Design & Manufacturing New business South Africa

SA April manufacturing output drops

The physical volume of manufacturing in South Africa in April declined by -21.6% year-on-year (y/y) after it declined by a revised -11.8% (-11.7%) in March, data provided by Statistics South Africa (Stats SA) on Wednesday, 10 June 2009, shows.

The value of sales in the industry was reported down -21.8% y/y after a revised -7.6% (-7.8%) decline in March.

The physical volume of production dipped 2.5% between March and April on a seasonally adjusted basis, while output in the four months to April was down 15.4% y/y.

Stats SA said the lower production in April 2009 could be partly attributed to a shorter working month in April 2009 as compared with April 2008 owing to the Easter period that switched from March in 2008 to April in 2009.

The 21.6% decrease in manufacturing production in April 2009 compared with April 2008 was mainly due to lower production in the basic iron and steel, non-ferrous metal products, metal products and machinery division (-26.4% and contributing -6.1 percentage points), followed by motor vehicles, parts and accessories and other transport equipment (-49.0% and contributing -5.3 percentage points) and the petroleum, chemical products, rubber and plastic products division (-15.2% and contributing -3.3 percentage points).

The seasonally adjusted manufacturing production for the three months ended April 2009 decreased by 4.2% compared with the previous three months. Lower production levels were reported by nine of the ten manufacturing divisions during the latest three months.

The decrease was driven mainly by lower production in petroleum, chemical products, rubber and plastic products (contributing -0.9 of a percentage point), wood and wood products, paper, publishing and printing and motor vehicles, parts and accessories and other transport equipment (each contributing -0.7 of a percentage point) and basic iron and steel, non-ferrous metal products, metal products and machinery (contributing -0.6 of a percentage point).

Published courtesy of

Let's do Biz