Advertise with fastmoving.co.za
 
 

Manufacturing production recorded its second consecutive contraction in July, in line with analysts’ expectations.
Manufacturing production recorded its second consecutive contraction in July, in line with analysts’ expectations.

Manufacturing production shrinks for second month in July

ECONOMIC NEWS

By Sunita Menon - Sep 11th, 13:01

Manufacturing production recorded its second consecutive contraction in July, in line with analysts’ expectations. 

Manufacturing production decreased 1.1% in July after the sector fell by 3.2% in June. This was slightly less than the Bloomberg consensus for a contraction of 1.5%.

The sector has been burdened by weak consumer demand and softening export growth prospects as a result of the strained global trade situation, mostly between the US and China.

The biggest drags were an 8% fall in petroleum, chemical products, rubber and plastic products; a 4.4% drop in basic iron and steel, non-ferrous metal products, metal products, and machinery' and a 5.1% decrease in wood and wood products, paper, publishing, and printing.

Compared to the prior month, however, seasonally adjusted manufacturing production increased by 0.4% in July.

Statistics SA’s manufacturing production index, which was at 100 points in 2015, came in at 102 points in July, up from 99.1 points in June.

The monthly changes in factory output measured by Statistics SA usually tend to be foreshadowed by the Absa-sponsored purchasing managers’ index (PMI), which is published on the first business day of each month.

The PMI, which gauges activity in the manufacturing industry, rose to 52.1 points in July, indicating expansion in the manufacturing sector for the first time this year. This was the index’s highest level in more than three years.Business Live 

Read more about: sa economy | production | manufacturing

Related News

Retail sales remain muted with consumers under pressure
20/09/2019 - 14:31
Retail sales for July marginally declined to 2 percent year on year as sales growth continued to reflect a muted demand in South Africa, with consumers’ discretionary income under strain.

4 reasons to be hopeful about South Africa’s economy
12/09/2019 - 14:40
Markets responded positively to South Africa’s economic growth rebounding in the second quarter, up 3.1%, and 0.9% for the year to June 2019.

Smarter mobility key to a sustainable South Africa
11/09/2019 - 13:19
The World Economic Forum has revealed that by 2050, 70% of the world’s population will be living and operating in urban areas. Considering the resultant congestion and air pollution, which are already challenges requiring mitigation in 2019, mobility and energy should be top of mind for those making the shift towards cities of the future.

Eskom: The largest threat to the stability of the SA economy
10/09/2019 - 09:45
On Tuesday 23 July, South African Finance Minister Tito Mboweni tabled a bill before the National Assembly which would see national state-owned power utility Eskom benefit from an allocation of R59 billion over the next three years.

African continental free-trade deal has a long way to go
09/09/2019 - 14:50
The African continental free-trade agreement (AfCFTA) is facing several challenges and it could be decades before there is a common market in which tariffs are largely abolished.