Sep 11, 2012
Manufacturing output increases 5.8% in JulyBack
Africa|Nedbank|Stats SA|Africa|Europe|China|United States|Adjusted Manufacturing Production|Chemical Products|Equipment|Food|Machinery|Machinery Divisions|Manufacturing|Manufacturing Divisions|Manufacturing Increase|Manufacturing Production|Metal Products|Nonferrous Metal Products|Plastic Products|Products|Rubber|Steel|Transport|Transport Equipment|South Africa|Process Control
© Reuse this
The higher factory output, which Nedbank said was in line with expectations, came on the back of increased production in the petroleum, chemical products, rubber and plastic products; and the basic iron and steel, nonferrous metal products, metals products and machinery divisions, which each contributed 1.7 percentage points.
Food and beverages contributed 1.3 percentage points to the July manufacturing increase.
Nedbank noted that despite the increase in production in July, the outlook for the rest of the year remained relatively bleak. “Recession in Europe, a subdued US economy and slower growth in China and other major emerging markets will weigh on the sector, undermining production, inventories and capital expenditure by the major export-orientated industries,” it said in a report.
Meanwhile, seasonally adjusted manufacturing production for the three months ended July increased by 0.1% compared with the previous three months.
Five of the ten manufacturing divisions reported positive growth rates over this period. The largest contributions to the increase of 0.1% were made by the following divisions: motor vehicles, parts and accessories and other transport equipment (3.7% and contributing 0.4 of a percentage point); food and beverages (2.2% and contributing 0.4 of a percentage point); petroleum, chemical products, rubber and plastic products (1.3% and contributing 0.3 of a percentage point) and electrical machinery (9.7% and contributing 0.3 of a percentage point).
These increases were to a large extent counteracted by lower production recorded for the basic iron and steel, nonferrous metal products, metal products and machinery division (-6.4% and contributing -1.3 percentage points).
Seasonally adjusted sales of manufactured products decreased by 0.5%, which translated to a loss of R1-billion in the three months ended July, compared with the previous three months.
Four of the ten manufacturing divisions reported negative growth rates over this period. The divisions mainly responsible for the decrease in total manufacturing sales were petroleum, chemical products, rubber and plastic products (-3.5% or -R3.2-billion) and basic iron and steel, nonferrous metal products, metal products and machinery (-3.4% or -R2.8-billion).
“Given the complex nature of the constraints weighing on the global economy, conditions in the manufacturing sector are likely to deteriorate during the remainder of this year and into the next.
“Although the market is expecting another rate cut, we expect the manufacturing process control to adopt a wait-and-see approach, ready to act if global conditions worsen dramatically but otherwise content to keep rates unchanged for an extended period if global and local conditions stabilise,” Nedbank commented.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...