South African manufacturing contracted at a slower pace in September than the previous month, Statistics South Africa said on its website today
By Ian Armitage
Is the South African economy recovering from its first recession in 17 years? Well, if the latest statistics from Pretoria-based Statistics South Africa are anything to go by, then yes.
It has indicated that South African manufacturing contracted at a slower pace in September than the previous month, with factory output dropping an annual 11.4 percent after declining a revised 15.2 percent in August.
Output rose a seasonally adjusted 3.1 percent in the month, while manufacturing production for the third quarter of 2009 increased by 2.6 percent compared with the second quarter of 2009; better than the 0.8 percent quarter-on-quarter increase in August 2009. Higher production levels were reported by six of the 10 manufacturing divisions during the third quarter of 2009.
The increase was driven mainly by higher production in the basic iron and steel, non-ferrous metal products, metal products and machinery division and the motor vehicles, parts and accessories and other transport equipment division, followed by the food and beverages division and the petroleum, chemical products, rubber and plastic products division.
However, these increases were partially counteracted by decreases reported by the furniture and other manufacturing divisions, and the wood and wood products, paper, publishing and printing divisions.
Manufacturing, which accounts for 14 percent of the South African economy, is expected to rebound in coming months as the global recession eases and six interest rate cuts since December spur consumer spending.
Edited by Ellie Duncan
Source: www.statssa.gov.za