SA June manufacturing production down 0.4% y/y
Output declined by 0.4% in June 2015 compared with June 2014, after falling by 1.6% in May.
UFX.com managing director Dennis de Jong said Tuesday's release of the manufacturing figures for June would have been closely monitored by observers to see if China's slowdown had started to hit the sector in earnest.
"A weaker rand should help stimulate exports going forward but the impending US interest rate rise, combined with a drastic scaling back of Chinese activity, will give Finance Minister Nhlanhla Nene and co. food for thought. It will certainly be a difficult few months ahead for the South African manufacturing industry, but we won't know precisely how difficult until the figures for July and August are released."
The 0.4% decrease was mainly due to lower production in petroleum, chemical products, rubber and plastic products and basic iron and steel, non-ferrous metal products, metal products and machinery.
Seasonally adjusted manufacturing production decreased by 1.2% in the second quarter 2015 compared with the first quarter of 2015. Six of the ten manufacturing divisions reported negative growth rates over this period.
Source: BDpro