MANUFACTURING production rebounded strongly in September, increasing by 8% year on year, after falling by a revised 1% (1.2%) in August after a strike in July disrupted output. This is according to data Statistics SA released on Tuesday.
The 8% increase was mainly due to higher production in the motor vehicles, parts and accessories and other transport equipment division, which rose 121.6% and contributed 5.8 percentage points. Stats SA said that production in the automotive sector was adversely affected by industrial action in September last year, which provided a low base and boosted the figures in September this year.
Manufacturing rose 4% month on month.
BNP Paribas Cadiz economist Jeff Schultz said the 4% was "impressive" and a reflection of the recent improvement in the Kagiso purchasing managers index (PMI), which gauges activity in the manufacturing sector.
"The PMI has shown that manufacturing is on the mend from strike difficulties in the first half of the year," he said. "This should carry on through into the fourth quarter and lend some support to GDP (gross domestic product) growth in the fourth quarter."
Stats SA said the food and beverages segment, which increased by 6.1% and contributed 1.6 percentage points, was also a large positive contributor to the year-on-year increase in manufacturing production.
Seasonally adjusted manufacturing production decreased by 1.3% in the third quarter of 2014 compared with the second quarter of 2014. Five of the 10 manufacturing divisions reported negative growth rates over this period.
The largest negative contribution to the decrease of 1.3% was made by the basic iron and steel, nonferrous metal products, metal products and machinery division (-6.1% and contributing -1.2 percentage points).
Seasonally adjusted sales of manufactured products (at current prices) increased by 0.3%, or R1.3bn, in the third quarter of 2014 compared with the second quarter of 2014.
Picture: THINKSTOCK
MANUFACTURING production rebounded strongly in September, increasing by 8% year on year, after falling by a revised 1% (1.2%) in August after a strike in July disrupted output. This is according to data Statistics SA released on Tuesday.
The 8% increase was mainly due to higher production in the motor vehicles, parts and accessories and other transport equipment division, which rose 121.6% and contributed 5.8 percentage points. Stats SA said that production in the automotive sector was adversely affected by industrial action in September last year, which provided a low base and boosted the figures in September this year.
Manufacturing rose 4% month on month.
BNP Paribas Cadiz economist Jeff Schultz said the 4% was "impressive" and a reflection of the recent improvement in the Kagiso purchasing managers index (PMI), which gauges activity in the manufacturing sector.
"The PMI has shown that manufacturing is on the mend from strike difficulties in the first half of the year," he said. "This should carry on through into the fourth quarter and lend some support to GDP (gross domestic product) growth in the fourth quarter."
Stats SA said the food and beverages segment, which increased by 6.1% and contributed 1.6 percentage points, was also a large positive contributor to the year-on-year increase in manufacturing production.
Seasonally adjusted manufacturing production decreased by 1.3% in the third quarter of 2014 compared with the second quarter of 2014. Five of the 10 manufacturing divisions reported negative growth rates over this period.
The largest negative contribution to the decrease of 1.3% was made by the basic iron and steel, nonferrous metal products, metal products and machinery division (-6.1% and contributing -1.2 percentage points).
Seasonally adjusted sales of manufactured products (at current prices) increased by 0.3%, or R1.3bn, in the third quarter of 2014 compared with the second quarter of 2014.
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