SA October manufacturing production up 2.2%

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Manufacturing production rose 2.2% year on year (y/y) in October after increasing by a revised 8.6% (8%) y/y in September.

Manufacturing output rose 0.5% between September and October.

ETM Analytics economist Manisha Morar said the latest data indicated that activity in the sector was stabilising after a prolonged period of strike action earlier in the year. "We consider the present growth rates a better indication of underlying production dynamics."

Morar said economic growth was likely to remain relatively subdued‚ particularly with "a failing energy grid".

Macquarie Securities SA economist Elna Moolman said the sector was likely to "do slightly better" next year‚ although power outages and uncertainty regarding power provision would weigh on output.

The 2.2% year-on-year increase was mainly due to higher production in the motor vehicles‚ parts and accessories and other transport equipment; food and beverages; and petroleum‚ chemical products and rubber and plastic products divisions.

The motor vehicles‚ parts and accessories division was particularly affected by the by metals and engineering workers' strike in July.

Seasonally adjusted manufacturing production increased by 3.8% in the three months ended October compared with the previous three months‚ with nine of the 10 manufacturing divisions reporting positive growth rates over the period.

The main contributors were the motor vehicles‚ parts and accessories and other transport equipment division‚ and the basic iron and steel‚ non-ferrous metal products‚ metal products and machinery division.

Source: BDpro via I-Net Bridge