Manufacturing output growth beats expectations
By Sunita Menon - Jan 11th 2018, 14:06
SA’s manufacturing output grew 1.7% in November from the same month in 2016, beating the economists’ consensus of 0.45%, Statistics SA reported on Thursday.
The boost came from food and beverages, which grew 6% and contributed 1.5 percentage points of the total.
Basic iron and steel, non-ferrous metal products, metal products and machinery grew 4.6% and contributed 0.8 of a percentage point.
Seasonally adjusted manufacturing production increased by 0.9% in November 2017 compared with October 2017 while production increased by 0.5% in the three months to end-November 2017 compared with the previous three months.
Investec economist Kamilla Kaplan said last week that the manufacturing sector was expected to derive some support from the strengthening global economy.
"Should expectations of strengthening demand conditions materialise and be sustained this will likely translate into increased production and activity."
Kaplan expected manufacturing production to have increased by 2% year on year in November while Trading Economic projected a 1.1% increase in manufacturing output from a year earlier.
In December, the Absa purchasing managers index (PMI), which measures sentiment in the manufacturing industry, suggested a slight improvement in the sector. The PMI rose to its best level in six months although it remained in contractionary terrain.
The seasonally adjusted PMI rose to 48.6 index points in November 2017 from 47.8 index points in October. A score above 50 indicates an expanding manufacturing sector but November’s figure was a vast improvement on previous months.
Absa said: "This was the fourth consecutive increase and brought the index to the best level since May 2017. However, the PMI remained stuck below the neutral 50-point mark for a sixth straight month, suggesting that the sector still faces headwinds."
© BusinessLIVE MMXVII
Inflation eases even more than expected
21/08/2019 - 10:36
Inflation eased more than expected to 4% in July.
Survivor crowned 2019 ABSA Top Ten Pinotage
15/08/2019 - 11:25
Survivor, the unbridled Swartland wine range, has been recognised as one of South Africa’s top Pinotage producers making the cut in the prestigious 2019 ABSA Top Ten Competition.
We need to rethink our food system to tackle climate change
15/08/2019 - 09:19
The way we produce, consume and discard food is no longer sustainable.
Crackdown on informal traders will hurt economy, says refugee forum
13/08/2019 - 09:40
SA’s embattled economy could be strained further if the crackdown on informal traders continues unabated, the African Diaspora Forum (ADF) warns.
Retail boost could steer SA away from a recession
12/08/2019 - 12:37
A rebound in economic growth in the second quarter of the year will likely see SA avert its second recession in two years.