Manufacturing positive
STATS SA: DESPITE SUPPLY-SIDE ISSUES PLAGUING THE INDUSTRY Wood products, motor vehicle parts the main contributors.
Manufacturing production bounced back in November after decreasing in October, despite supply-side issues that continue to plague industry, increasing by 1.9% compared to November 2022, while manufacturing sales also increased by 1,1% compared to October 2023.
According to Statistics SA’s production results for November 2023, wood products and motor vehicle parts were the main contributors to the production increase.
Seasonally adjusted manufacturing production increased by 0.8% compared to October, when there was a 0.1% decrease compared to September. The uptick also happened despite intensified load shedding in November, while port congestion also worsened.
Favourable base effects meant manufacturing production increased by 1.9% compared to a year ago.
Jee-A van der Linde, senior economist at Oxford Economics Africa, says this was in line with consensus, after industry was adversely affected by a prolonged strike at Transnet in the fourth quarter of 2022.
The largest positive contributors to the annual increase were wood and wood products, paper, publishing and printing that increased by 8.0% and contributed 0.8 of a percentage point, and motor vehicles, parts and accessories and other transport equipment, that increased by 5.7% and contributed 0.6 of a percentage point.
However, seasonally adjusted manufacturing output declined by 0.5% during the three months ending in November compared to the previous three months. Stats SA noted that seven of the 10 manufacturing divisions reported negative growth rates.
The largest negative contributions came from food and beverages that decreased by 2.0% and contributed -0.5 of a percentage point, and basic iron and steel, non-ferrous metal products, metal products and machinery, that decreased by 1.4% and contributed -0.3 of a percentage point.
The increase in manufacturing sales of 1.1% in November compared to October followed monthon-month deceases of 0.5% in October and 0.1% in September.
Manufacturing sales increased by 2.1% in the three months ending in November compared to the previous three months.
The largest contributions came from vehicles, parts and accessories and other transport equipment that increased by 8,6% and contributed 1.4 percentage points, and petroleum, chemical products, rubber and plastic products that increased by 3.2% and contributed 0.7 of a percentage point.
Van der Linde says data from the productive sectors has not been terrible so far, suggesting that industry could make a small positive contribution to the overall GDP. –