SA April manufacturing production down 1.5%

Manufacturing production fell by 1.5% year-on-year (y/y) in April‚ its first year-on-year decline since September 2013 after increasing by 0.7% y/y in March. This according to data released by Statistics South Africa today, 10 June 2014.

This was against a BDlive median consensus forecast from a survey of nine economists for a 5.6% decline.

Lower production in motor vehicles‚ parts and accessories and other transport equipment; and petroleum‚ chemical products‚ rubber and plastic products‚ were the main reasons behind the decline.

These sectors are also weighed on by the prolonged and ongoing strike at platinum mines‚ which has spilled over into manufacturing and negatively affected output in the sector. Platinum group metals are key inputs in the production of some manufactured goods.

Other factors weighing on manufacturing are weak domestic and global demand.

Manufacturing production rose 3.5% month on month.