Advertise with fastmoving.co.za
 
 

Production in the sector was expected to shrink, but the numbers were worse than forecasts.
Production in the sector was expected to shrink, but the numbers were worse than forecasts.

Manufacturing output gloomier than expected

ECONOMIC NEWS

bdlive.co.za - Sep 7th 2017, 15:12

The manufacturing sector took a knock in July, with production declining more than expected. 

Manufacturing production shrank 1.4% from a year earlier.

The July purchasing managers index (PMI) suggested that the industry was doing poorly, with the index continuing to fall well below the neutral 50 mark.

FNB economist Mamello Matikinca expected manufacturing production to show another poor print as manufacturers continued to grapple with very weak domestic demand.

“Advance indications provided by the manufacturing PMI signalled a deterioration in levels of manufacturing activity in July, in a particularly weak domestic demand environment that has been insufficiently countered by the strengthening global demand,” she said.

Investec economist Kamilla Kaplan had expected manufacturing production to have declined at a rate of 0.5% year on year in July while Trading Economic projected a 0.9% fall from a year earlier.

The biggest drag came from petroleum, chemical products, rubber and plastic products, which detracted 1.8 percentage points.

Seasonally adjusted manufacturing production increased by 1.5% compared with June 2017 while seasonally adjusted manufacturing production increased by 0.9% in the three months ended July 2017 compared with the previous three months, with seven of the 10 manufacturing divisions reporting positive growth.

SA's economy exited recession in the second quarter, but there it little optimism of a significant improvement in the overall growth trajectory.

Mining production, released earlier on Thursday, was also worse than expected.
© BusinessLIVE MMXVII 

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

Related News

Trade body will have a bone to pick in poultry tarrif case
14/06/2019 - 09:30
Those with intimate knowledge of the tariff application say that ITAC's position is akin to a zero-sum game, where they may have to choose between exposing local poultry producers to cheap imports they cannot compete with, or raising consumer prices for poultry to impossibly high levels.

SA's first citrus shipment arrives in China
13/06/2019 - 15:39
The historic shipment of 5 200 tons of citrus in a breakbulk vessel has arrived at Shanghai Port in the People’s Republic of China.

Increase in sales reflect stronger second quarter
13/06/2019 - 10:41
Data from Statistics South Africa (StatsSA) showed that retail sales in April increased 2.4percent year-on-year - the strongest gain in retail trade in six months, providing further evidence that the economy began the second quarter on a firmer footing following the first quarter’s 3.2percent plunge.

Retail sales jump in April, giving hope of avoiding a recession
12/06/2019 - 15:44
SA’s retail sales jumped 2.4% in April, led by clothing retailers, adding to hopes that a technical recession may be avoided in the second quarter.

SA stokvels collectively save R44bn annually
11/06/2019 - 16:04
A total of R44 billion is collectively saved in 820 000 stokvels in South Africa annually, with more than 11 million South Africans being members of stokvels, according to Nedbank research.