SA Jan manufacturing production down 2.3% y/y

Manufacturing production fell in January due to lower production in divisions such as food and beverages‚ glass and non-metallic mineral products‚ petroleum‚ and communication apparatus and professional equipment.

Statistics SA data showed on Thursday, 12 March 2015, that manufacturing production decreased by 2.3% in January 2015 compared with January 2014 after increasing by 0.9% in December.

Severe load-shedding in January and muted global demand are among factors weighing on output.

Seasonally adjusted manufacturing production decreased by 0.6% in the three months ended January 2015 compared with the previous three months‚ with five of the 10 manufacturing divisions reporting negative growth rates over the period.

The main contributors to the 0.6% decrease were the motor vehicles‚ parts and accessories and other transport equipment division; and the furniture and other manufacturing division.

Earlier‚ data showed that mining production also fell sharply in January amid lower production in the gold and platinum group metals mining divisions.

Barclays Africa economists said the latest mining and manufacturing data provided "a useful indication of the severity of the negative effects of the power outages on output in the productive sector".

Source: BDpro via I-Net Bridge