Advertise with fastmoving.co.za
 
 

Load-shedding has weighed on production volumes, keeping growth constrained.
Load-shedding has weighed on production volumes, keeping growth constrained.

Manufacturing growth remains tepid in February

ECONOMIC NEWS

By Sunita Menon - Apr 12th, 09:24

Manufacturing production grew 0.6% in February after the sector saw subdued growth of 0.3% in January. This was slightly above the Bloomberg consensus of 0.5%.  

The biggest growth drivers were a 3.2% rise in food and beverages, and a 2.9% uptick in petroleum, chemical products, rubber and plastic products.

While the sector has seen growth in recent months, the re-emergence of load-shedding has weighed on production volumes, keeping growth constrained.

Statistics SA’s manufacturing production index, which was at 100 points in 2015, came in at 95.1 points in February, up from 88.2 points in January.

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

The PMI, which gauges activity in the manufacturing industry, fell to 46.2 points in February, indicating a contraction.

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

Business Live 

Related News

Retail sales beat expectations in February
19/04/2019 - 12:39
SA shoppers spent more than expected in February, with retail sales growing 1.1% year on year, led by expenditure in the textiles, footwear and clothing sector.

Chicken prices may spike by up to 32% due to tariff increases, says importers
18/04/2019 - 09:22
Increasing tariffs on imported poultry products could hike chicken prices by up to 32%, says consumer bodies and importers and exporters organisation.

Inflation accelerates in March after painful fuel price increase
17/04/2019 - 13:29
Another fuel price hike in March led to inflation hitting the midpoint of the Reserve Bank’s 3%-6% target range.

Moody’s expects SA confidence to rise after elections
17/04/2019 - 09:13
SA is expected to see a surge in confidence following the elections in May, as the current administration under President Cyril Ramaphosa is continuing to gradually move forward with the implementation of its reform agenda, Moody’s Investors Service said.

Motorists should brace for another petrol shock
16/04/2019 - 08:20
Unexpectedly strong international fuel prices have raised the likelihood of an unwelcome fuel price hike for petrol users in May.