SOUTH AFRICA’S MANUFACTURING SECTOR RECORDS 0.7 PCT RISE IN JUNE 2018

JOHANNESBURG-- An increase in output by the food and beverage industry has helped South Africa's manufacturing sector escape a decline in June this year.

The latest monthly report from Statistics South Africa (Stats SA) shows that manufacturing output expanded by 0.7 per cent year-on-year in June, way below market expectations. Manufacturing production had expanded at 2.3 per cent year-on-year in May this year.

Some economists had expected a 2.2 per cent expansion in June.

The largest positive contribution towards an increase in manufacturing production came from the food, beverages and petroleum sectors. The largest negative contributions were from motor vehicles, parts and accessories as well as wood products," Stats SA director Nocolai Classeen said here Tuesday.

"The manufacturing sector is being negatively impacted by the volatile rand and global trade tensions. It is also battling low demand as well as high input costs on the back of higher fuel and electricity prices.

"The July Purchasing Managers Index, however, points to moderate improvement in the sector in the third quarter. The index rose to 51.5 index points in July from 47.9 in June. This indicates expansion in the manufacturing sector.

All other divisions experienced falls in production, the largest decline being recorded by communications and professional equipment, which saw a drop of 9.8 per cent, while the wood and paper sub-sector continued its bad run recording its 18 consecutive monthly decline.

The manufacturing sector is the fourth largest contributor to economic growth in South Africa.

Source: NAM NEWS NETWORK

[related_post themes="text" id="14919"]