http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.79Change: 0.01
R/$ = 12.55Change: -0.04
Au 1097.09 $/ozChange: 1.60
Pt 985.00 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 07, 2014

Manufacturing up 0.5% in June, reflects negative strike impact

Back
Photo: Duane Daws
 
 
 
Engineering|Africa|Nedbank|Petroleum|Stats SA|transport|Africa|South Africa|Beverage Production|Chemical Products|Equipment|Food|Gross Domestic Product|Manufacturing|Manufacturing Division|Manufacturing Figures|Manufacturing Sectors|Nonmetallic Mineral Products|Plastic Products|Product|Products|Rubber|Steel|Transport Equipment|Yearly Manufacturing Production
Engineering|Africa|Petroleum|transport|Africa||Equipment|Manufacturing|Products|Rubber|Steel|
engineering|africa-company|nedbank|petroleum|stats-sa|transport|africa|south-africa|beverage-production|chemical-products|equipment|food|gross-domestic-product|manufacturing|manufacturing-division|manufacturing-figures|manufacturing-sectors|nonmetallic-mineral-products|plastic-products|product|products|rubber|steel|transport-equipment|yearly-manufacturing-production
© Reuse this



While yearly manufacturing production grew by 0.5% in June, from a 3.8% decline in May, manufacturing sector performance was likely to continue being negatively affected by the earlier strike in the steel and engineering sector, Nedbank’s economic unit said on Thursday.

Statistics South Africa (Stats SA) said that the 0.5% year-on-year increase was mainly driven by higher production in the petroleum, chemical products, rubber and plastic products segment, which was up 3.9%, contributing 0.9 of a percentage point, while food and beverage production increased 3.2% and added 0.7 of a percentage point.

The motor vehicles, parts and accessories and other transport equipment division was a significant negative contributor, having declined 11.3%, subtracting 1.1 percentage points.

Meanwhile, on a seasonally adjusted basis, manufacturing production was up by 1.4% month-on-month but down 0.4% quarter-on-quarter in the second quarter of 2014, Stats SA revealed.

The quarterly decline was a result of lower production in the motor vehicles, parts and accessories and other transport equipment, as well as the petroleum, chemical products, rubber and plastic products categories, which declined by 6.1% and 1.7% respectively.


Aside from these segments, declines were also recorded for textiles, clothing, leather and footwear, glass and nonmetallic mineral products and furniture and other manufacturing division, which showed reductions of 3.7%, 4.7% and 3.6% respectively.

Of the ten manufacturing sectors, six recorded declines on a quarterly basis.

Nedbank said the improved June manufacturing figures supported its forecast of a modest 1.4% annualised expansion in gross domestic product during the second quarter of the year, following the 0.6% contraction of the first quarter.

“However, despite this, the production side of the economy remains weak. Unfortunately, inflation has been above the Reserve Bank’s 6% upper target since March this year and is likely to remain above 6% well into next year. The Monetary Policy Committee (MPC) will have to balance these two factors when deciding on interest rates.

“The bank has reiterated that interest rates are in a rising cycle and that, at some point, they will have to be ‘normalised’. The implication is that the bank will continue to talk tough but to act as moderately as possible given the weak economy.

“The MPC will therefore probably pause in September before hiking by another 0.25 percentage points in November,” Nedbank statd.

It added that, from the Kagiso Purchasing Managers’ Index (PMI) numbers, it seemed as if July manufacturing production growth would still remain lackluster as the PMI figure came in at 45.9 for July from 46.6 in June.

“The Kagiso PMI numbers have been below the 50-point mark that separates expansion from contraction in the manufacturing sector for four consecutive months, which does not bode well for the sector,” Nedbank said, adding that the domestic climate could, however, be mitigated by increased production stemming from the weaker rand boosting exports and production.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Manufacturing News
Dual-listed packaging and paper group Mondi expects its underlying operating profit for the half-year ended June 30 to be above the €377-million it reported for the first six months of 2014.  In the six months under review, the group recognised a net special item...
Dutch brewer Heineken and spirits maker Diageo have agreed to end their 11-year cooperation in South Africa and Namibia in a series of deals to disentangle joint ventures. Diageo said in a statement it would receive net cash of R2.5-billion ($198.4-million) from the...
Article contains comments
The sharp decline in commodity prices is, on balance, negative for the outlook for the South African rand, new bank research shows, with lower oil prices being more than offset by lower mineral and metals prices. Standard Bank head of South African research Walter de...
More
 
 
Latest News
Not only were new oil and gas (O&G) discoveries in East Africa a catalyst for investment into road, rail and pipeline infrastructure, but they also contributed to the region’s economic growth, with growth of 5.5% projected for this year and an estimated 6% to 7% for...
Transnet has won the 2014 Nkonki State-Owned Company (SOC) Integrated Reporting Award for the best performer. Assurance and advisory firm Nkonki on Wednesday released the findings of its 2015 review of integrated reporting by South African SOCs. The report, titled...
Leading water scientists say it is no longer debatable that South Africa is experiencing a water crisis given that there are already serious problems in supplying enough water of sufficient quality to meet the country’s social and economic needs. CSIR researchers...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics.
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96