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
The clever shift SA's economy can make: economist
13/11/2019 - 13:29
Finance minister Tito Mboweni’s medium-term budget gave a blunt presentation of the financial issues facing South Africa and it is clear that government has finally come to grips with reality, says Efficient Group economist Francois Stofberg.
Billions in investments flow in to improve SA's economy
13/11/2019 - 11:30
More businesses have pledged billions of rands in investment to the ailing South African economy at the second investment conference in Sandton.
Black Friday hype begins as retailers test shoppers with 'teasers'
06/11/2019 - 09:15
Retailers’ gloves are off in the battle to gain market share ahead of Black Friday, with several deals already being unveiled to attract customers.
Manufacturing sentiment improved in October
05/11/2019 - 12:52
Manufacturing activity recovered in October, improving on the previous month’s revised figures and beating market expectations.
Global wine output falls this year after bumper 2018
01/11/2019 - 11:17
Global wine production fell about 10% this year, with major producers France, Italy, and Spain hit the most by unfavourable weather conditions, according to a leading international body.