JOHANNESBURG – South Africa’s manufacturing output shrank by 4,4 per cent year-on-year in volume terms in November from a downwardly revised 1,8 per cent contraction in October, official data showed on Thursday.
Compared with October, manufacturing production in volume terms contracted by a seasonally adjusted three per cent in November, Statistics South Africa said.
Manufacturing output was down 3,1 per cent in the three months to November compared with the previous three months, also on a seasonally adjusted basis.
Efficient Group economist Fanie Joubert said: ‘It is worse than expected. I think again it just confirms the manufacturing sector is definitely under a lot of strain currently.
‘Despite the weaker rand, that is not really coming through on the production side. But, given the outlook for economic growth it makes sense that manufacturers are sort of scaling down production at this stage to make sure they do not over produce.
‘Obviously not a good thing (but) it almost makes sense in this current economic environment.’ – busrep.co.za
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