Advertise with fastmoving.co.za
 
 

Production rises 3% compared to forecast of 0.8%
Production rises 3% compared to forecast of 0.8%

Annual manufacturing growth in October beats expectations

ECONOMIC NEWS

By Sunita Menon - Dec 11th 2018, 20:21

Production from SA’s factories was boosted considerably in October compared with the same month in 2017, Statistics SA reported. 

Annual growth in manufacturing production grew 3% in October after remaining flat at 0.1% in September. This was considerably higher than the Bloomberg consensus of 0.8%.

The biggest growth drivers were a 6.5% rise in food and beverages, a 14% uptick in motor vehicles, parts and accessories and other transport equipment, and a 3.2% increase in basic iron and steel, non-ferrous metal products, metal products and machinery.

Compared with the month before, manufacturing production grew 1.1% in October.

Stats SA’s manufacturing production index, which was set to 100 points in 2015, came to 113.4 points in October, up from 105.3 points in September and 110.1 points in October 2017.

The monthly changes in factory output measured by Stats SA usually tend to be foreshadowed by the Absa-sponsored purchasing managers’ index (PMI), which is usually published on the first business day of each month.

In October, the manufacturing PMI declined for a third consecutive month to reach 42.4 index points. A level under 50 points indicates a contraction in the sector.

However, in recent months the production figures and the survey have not been in tandem.
 

Read more about: production | pmi | stats | sa economy | manufacturing

Related News

Food and beverages giant PepsiCo makes offer to acquire Pioneer Foods
19/07/2019 - 10:18
In a vote of confidence about SA’s long-term prospects, New York-based food and beverages giant PepsiCo has made an offer to buy Pioneer Food Group, which makes Sasko breads and Ceres juices, in a deal worth at least R25.4bn.

Poultry body defends call for 82% chicken tariffs
12/07/2019 - 08:50
The South African Poultry Association (Sapa) has defended its decision to call for a hike in chicken imports tariffs to 82 percent, up from the current 37 percent.

Manufacturing output remained tepid in May
11/07/2019 - 15:56
SA's manufacturing sector grew a marginal 1% year on year in May but failed to hold onto a surge experienced in April, when the sector rebounded after being hit by load-shedding in first quarter of 2019.

SA trade conditions remain under pressure - index
10/07/2019 - 16:11
Trade conditions in South Africa remained under pressure in June 2019, according to the South African Chamber of Commerce and Industry (Sacci).

Libstar launches world-class par-bake facility
10/07/2019 - 14:51
Libstar, a leading producer and marketer of high-quality products in the consumer packaged goods (CPG) industry, has further increased its competitiveness by expanding one of its facilities to meet key client requirements offering par-baked goods by converting a section of the group’s Amaro Foods’ facility in Epping, Cape Town, into a world-class par-bake facility.