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Wednesday, 12 June 2024 11:33

South African manufacturing output rises 5.3% y/y in April.

By Lehlohonolo Lehana.

@VWSA.

South Africa's manufacturing production has increased by 5.3% year-on-year in April, after falling by a revised 6.5% in March, Statistics South Africa (StatsSA) data showed on Tuesday.

Stats SA industry statistics director Nicolai Carson said on June 11 that, out of the ten manufacturing divisions, nine showed positive growth.

The petroleum, chemical, rubber and plastic products division, alongside the wood, paper, printing and publishing division, emerged as the most significant contributors to this growth, he said.

Manufacturers in the petroleum, chemical, rubber and plastic products division saw a 5.1% increase in production, while the wood, paper, printing, and publishing division experienced a 9.9% rise year-on-year.

However, not all divisions experienced growth. The furniture and other manufacturing division saw a decline in production, with a decrease of 2.1% year-on-year. However, this division was the sole sector to report a negative growth rate.

On a month-on-month basis, seasonally adjusted manufacturing production surged by 5.2% in April compared with March. This marks the largest monthly increase since August 2021, when production rose by 6.4%.

This was expected to be as a result of the impact that the extended delay of load-shedding, which is likely supporting business conditions in the factory sector, according to the BER.

However Investec economist Lara Hodes said that "despite April's positive outcome, domestic demand remains sluggish.

"Advance indications provided by May's Purchasing Managers' Index indicate that conditions in the domestic manufacturing sector deteriorated somewhat in May [while] heightened political uncertainty led to many orders being placed on hold."

Hodes said that the demand environment globally has also improved.

The Investec economist cited the JP Morgan Global Manufacturing PMI Survey, saying that the lift in global manufacturing "was sustained into April, as rising intakes of new work and a slight expansion of international trade volumes supported mild production growth."

Here is the Statistical Release: Manufacturing production and sales April 2024.