Manufacturing production in South Africa increased by 2.2 percent in October 2017 compared with October 2016, Statistics South Africa said on Tuesday.
StatsSA said this increase was mainly due to 7.3 percent higher production in the food and beverages sector and a 5.8 percent increase in basic iron and steel, non-ferrous metal products, metal products and machinery. There was an encouraging increase of 2.6 percent year-on-year in vehicle and parts production.
Seasonally adjusted manufacturing production increased by 0.7 percent in October 2017 compared with a weak base of 1.7 percent contraction in September and 0.4 percent in August.
Only two of the ten manufacturing divisions reported positive growth rates in the three months ended October 2017 compared with the previous three months.
Jason Muscat, FNB senior economic analyst, said year-to-date, however, the manufacturing sector has contracted 0.9 percent and will almost certainly detract from 2017 GDP.
“The fourth quarter of 2017 manufacturing business confidence slipped three points to 24, suggesting that 76 percent of the manufacturing sector are displeased with market conditions,” Muscat said.
“This reading suggests further weakness in the November and December production numbers. Our outlook for the sector in 2018 is for continued weak growth in line with weak economic prospects and low business confidence.”
– African News Agency (ANA)
