http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.03
R/$ = 11.07Change: 0.01
Au 1238.28 $/ozChange: -4.47
Pt 1258.00 $/ozChange: 3.00
 
 
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 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|Stats SA|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|Transport Equipment|Yearly Manufacturing Production
Engineering|Africa||Africa||Equipment|Manufacturing|Products|Rubber|Steel|Transport|
engineering|africa-company|nedbank|stats-sa|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-industry-term|transport-equipment|yearly-manufacturing-production
More Insight
© 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 33 minutes ago JSE-listed materials supplier Afrimat expects to report basic earnings per share (EPS) of between 59c and 64c, when it releases its interim results for the six months ended August 31. This would be between 20% and 30% higher than the EPS of 49.1c recorded in the...
Updated 56 minutes ago JSE-listed Freedom Properties has appointed Jan Francois (Franky) Pretorius as CFO and FD to succeed Richard Eaton, who resigned on October 17. Pretorius is a qualified chartered accountant and completed his articles with KPMG, where he was eventually promoted to...
Updated 2 hours 26 minutes ago Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX). BCX noted in a statement to shareholders that the Namibian Competition Commission had given its approval of the deal on October 8 and...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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