South Africa: Manufacturing output contracts for the first time in nine months
August 8, 2019
The manufacturing sector shrank in June for the first time since September 2018. Manufacturing output, in annual terms, fell 3.2% following a revised 0.4% expansion in May (previously reported: +1.0% year-on-year). A sizeable contraction in petroleum, chemical products, rubber and plastic products led the downturn. Production of basic iron and steel, non-ferrous metal products, metal products and machinery; and wood and wood products, paper, publishing and printing also fell markedly.
Meanwhile, annual average growth in manufacturing output fell to 1.0% in June from 1.3% in May.
On a month-on-month basis, manufacturing output declined 1.5% in seasonally-adjusted terms (May: -1.9% month-on-month s.a.).
Author: Nihad Ahmed, Economist