https://www.engineeringnews.co.za

Manufacturing activity rose in Nov, but momentum weak

27th January 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

Font size: - +

South African manufacturing production growth climbed back into positive growth territory in November, rising 1.9% year-on-year, after contracting 2.7% year-on-year in October.

According to the BNP Paribas Securities economist Jeffrey Schultz, this also came in higher than the firm’s consensus of a 1.1% growth forecast.

Manufacturing Production On a seasonally adjusted month-on-month basis, manufacturing production climbed 0.3% in November, mainly on the back of a 2.4% increase in basic iron and steel and nonferrous metals, a 5.7% rise in motor vehicles, parts and accessories and a 0.7% climb in wood, paper, publishing and printing production.

The largest negative contribution came from a 2.1% drop in petroleum, chemical, rubber and plastics production.

In year-on-year terms, the improvement in headline growth was driven mainly by a return to positive production growth in food and beverages, which climbed 2.3% after contracting 6.6% the previous month.

Growth in the petroleum, chemicals, rubber and plastics sectors also improved, climbing 0.4% year-on-year from –1.8% in October, alongside a stronger , up 6.1% bounce in basic iron and steel and nonferrous metals.

The largest negative contribution came from motor vehicles, parts and accessories production, which slipped 3.2%, albeit at a slower pace of contraction following October’s double-digit drop.

“Though on the face of things the improvement in headline manufacturing production growth looks encouraging, momentum growth in the sector shows that activity remains extremely weak,” Schultz said.

He added that the Bureau for Economic Research’s newly released Manufacturing Purchasing Managers Index for December 2016 showed another deterioration in manufacturing activity in the final month of the year, down to 46.7 from 48.3.

“This does not bode particularly well for manufacturing’s ability to contribute positively to fourth-quarter gross domestic product growth,” Schultz noted.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Latest Multimedia

Magazine video image
Magazine round up | 29 March 2024
Updated 1 hour 6 minutes ago

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.08 0.132s - 137pq - 2rq
Subscribe Now