South Africa: Manufacturing output rebounds in January
March 14, 2017
South Africa’s manufacturing production rebounded at the outset of the year, increasing 0.8% year-on-year in January. The result contrasted the 2.0% contraction seen in December and stemmed mainly from a surge in output of basic iron and steel, metal products and machinery. Contributing to the monthly expansion was also higher production for petroleum, chemicals and plastics. Due to the rebound, annual average growth in manufacturing production inched up from 0.8% in December to 1.0% in January.
That said, sequential data do not corroborate the improvement suggested by the annual data. Manufacturing production declined a seasonally-adjusted 0.4% from the previous month in January, which more than offset the 0.2% increase observed in December.
Author: Ricardo Aceves, Senior Economist