South Africa: Manufacturing activity records largest decline in six months in July
September 9, 2021
Manufacturing output slid 4.1% in year-on-year terms in July, which markedly contrasted June's 11.9% increase. The result marked the sharpest drop since January. Looking at the details of the release, the reading came on the back of a fall in food and beverages, and textiles, clothing, leather and footwear output. In addition, basic iron and steel, non-ferrous metal products, metal products and machinery, as well as motor vehicles, parts and accessories, and other transport equipment production lost notable pace, while wood and wood products, paper, publishing and printing output also decelerated. Meanwhile, the trend improved, with annual average manufacturing production growth rising to 5.0% in July (June: 4.4%).
On a seasonally-adjusted monthly basis, manufacturing production plummeted 8.0% in July (June: -1.2% mom), the worst result since April 2020.