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

With August's CPI lower than expected, a hike in interest rates will be a close call
19/09/2018 - 10:22
Consumer inflation surprised to the downside in August, lessening the likelihood of an interest-rate increase by the SA Reserve Bank.

Low business confidence bodes ill for SA
18/09/2018 - 14:33
SA’s battered economy will come under further strain as business confidence reached its lowest level in a year.

Dismal update sends Rhodes Foods’ shares plummeting
17/09/2018 - 10:28
The food producer warned of a large decline in its full-year earnings due to the crippling drought in the Western Cape.

Retail trade sales up by 1.3% as appliances, clothing show growth - Stats SA
12/09/2018 - 16:25
Retail trade sales for July grew by 1.3% year-on-year in real terms - with appliances and clothing indicating significant growth, Stats SA.

Impairments push Clover into a full-year loss
12/09/2018 - 13:07
Consumer goods and products producer Clover swung to a loss in the year to end-June, as the sudden resignations of the CEO and chair of Dairy Farmers of SA (DFSA) forced the group to write down the R439m revolving credit facility it had extended to the subsidiary.