South Africa’s factory output swings into 2.0% y/y contraction in April

By bne IntelliNews June 11, 2015

South Africa’s manufacturing output contracted by 2.0% y/y in April, reversing a revised 4.0% y/y expansion in March, preliminary data from Statistics South Africa showed.

The drop was driven mainly by a 4.5% y/y decline in manufacturing of basic iron and steel, non-ferrous metal products, metal products and machinery (contribution of -0.9pp) and a 2.8% fall in manufacturing of petroleum, chemical products, rubber and plastic products (-contribution of -0.6pp). The segments of radio, television and communication apparatus and professional equipment and wood and wood products, paper, publishing and printing contributed -0.3pp each to the overall development as their production fell 15.3% y/y and 2.3% y/y, respectively.

On a seasonally adjusted monthly comparison basis, factory output declined 2.0% in April, after a 1.2% growth in March.

In the three months to end-April, the manufacturing production edged up by a seasonally-adjusted 0.1% as compared to the preceding three-month period, with four of the 10 manufacturing divisions reporting growth. It was by 0.7% higher y/y.

Year-to-date, factory output narrowed by 0.1% y/y.

The total sales of manufactured products at current prices fell 1.3% y/y to ZAR141.8bn ($11.4bn) in April, reversing a 6.5% y/y growth in the previous month, Stats SA said. On a seasonally adjusted basis, manufacturing sales dropped 2.7% m/m in April, but were by 1.0% lower in the three months to end-April as compared to the preceding three-month period. Year-to-date, factory sales rose 0.7% y/y.

The manufacturing industry, which accounts for 13% of South Africa’s total economic output, shrank 2.4% q/q in Q1 following a 9.5% q/q growth in Q4, but its y/y growth rate edged up to 0.4% from 0.3%. The sector, which was hit by strikes last year, is now troubled by frequent power outages, which affect manufacturers’ ability to produce, as well as by weak demand, both foreign and domestic.

Related Articles

Egypt and Russia sign supplementary agreements to advance El-Dabaa nuclear plant

Egypt and Russia have signed a supplementary intergovernmental agreement to push forward the El-Dabaa nuclear power plant project in Egypt, Al Arabiya reported on July 8, citing a statement from ... more

Malawi-focused Mkango Resources' unit to merge with US-based Crown PropTech

Lancaster Exploration (Lancaster), a subsidiary of Mkango Resources (Mkango), has announced a merger with Crown PropTech Acquisitions (CPTK), a US-listed special purpose acquisitions company. ... more

Africa adds 4.5GW new hydropower capacity in 2024, says IHA

Africa made notable progress in hydropower development in 2024, adding over 4.5 GW of new capacity, more than double the 2 GW installed in 2023, according to the International Hydropower Association ... more

Dismiss