August manufacturing stats falls by 13.7%

The decrease has been attributed to lower production in the basic iron and steel, non-ferrous metal products, metal products and machinery division (-24.4% and contributing -5.5%).

The petroleum, chemical products, rubber and plastic products division (-10.2% and contributing -2.5%) and motor vehicles, parts and accessories and other transport equipment division (-22.1 and contributing -2.3%) also contributed to the decrease.

Standard Bank economist Danelee van Dyk, who had predicted a 16.3% contraction, said she had been pleasantly surprised.

“This shows that the recovery is broad-based among the sectors with eight of the ten sectors reporting an increase relative to June,” she said.

Van Dyk added that the data placed the sectors on a positive footing to restore economic growth in the third quarter.

Meanwhile, StatsSA said mining production for July increased by 4.8% compared to July last year.

“Mining production for July 2009 increased by 4.8% compared with July 2008, reflected by a 6.7% increase in the production of non-gold minerals.”

Commenting on this data, Van Dyk said the data showed that the economy had reached its lower turning point and that this confirmed a positive growth rate in the third quarter.

Article published courtesy of BuaNews