Advertise with fastmoving.co.za
 
 

SA’s manufacturing output grew 1.7% in November from the same month in 2016, beating the economists’ consensus of 0.45%.
SA’s manufacturing output grew 1.7% in November from the same month in 2016, beating the economists’ consensus of 0.45%.

Manufacturing output growth beats expectations

ECONOMIC NEWS

By Sunita Menon - Jan 11th, 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 

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

Related News

Surprise dip in inflation offers relief to consumers
22/06/2018 - 08:49
Inflation is hitting the rich hardest, Stats SA's figures show.

Higher taxes take a toll as retail index slumps to a three-month low
21/06/2018 - 08:53
The JSE’s general retail index, which includes the likes of Woolworths and Mr Price, has posted its worst rolling three-month period since the end of 2013, as depressed consumer confidence and a brewing US-China trade war ruin projections of a significant uptick in consumer spending.

Township retail and shopping centre market growing at a rapid pace
20/06/2018 - 10:40
Despite a challenging economy and disruptions, townships have become hubs for big development in retail and brands.

Construction index reflects big downturn in building materials sales
20/06/2018 - 09:36
The Afrimat Construction Index for the first quarter of 2018 shows a large downturn year on year as SA’s mining and construction industries remain mired in negative territory.

Fitch retains its junk rating for SA
19/06/2018 - 10:25
The agency warns financial challenges at state-owned enterprises remain substantial and government debt has yet to stabilise.