Factory output rises at fastest pace in almost two years in March
SA’S embattled manufacturing sector rebounded in March as second-wave lockdown conditions eased, rising at its fastest pace in almost two years, and providing a minor, first-quarter bump for the economy as a whole.
Overall factory output increased by an annual 4.6% in March, after a revised 2.5% decline in February, Stats SA said on Tuesday, its best performance since April 2019.
Economists had expected a recovery in activity as socioeconomic restrictions eased in that month, and the Bloomberg prediction was for a 1% increase year on year.
Food and beverages jumped 10.4% year on year, contributing headline 3.0 percentage figure, while points’to SAS motor the and transport sector surged 25.9%, contributing 2.1 percentage
Overall factory output increased by an annual 4.6% in March
points. The pandemic hit the SA manufacturing industry hard, and output had fallen for 18 consecutive months from June 2019 to November 2020, before recovering in December.
Activity was again hit in January and February as SA grappled with a second wave of Covid-19, which prompted the government to temporarily restore lockdown restrictions.
March is the final month of
SA’S first quarter and Stats SA data showed on Tuesday that manufacturing should help support SA’S GDP in early 2021.
Seasonally adjusted manufacturing production increased by 0.3% in the first quarter of 2021 compared with the fourth quarter of 2020. Five of the 10 manufacturing divisions reported positive growth rates over this period, Stats SA said, with the motor sector faring best — up 12.4%.