SA February manufacturing up

Manufacturing production in South Africa in February rose 6% year on year (y/y) after increasing a revised 1,6% (1,3%) in January, data released by Statistics South Africa on Thursday showed.

The economy’s second biggest contributor to GDP shed the negative growth spell to grow 4,9% in 2010 compared with the -12,9% in 2009.

A leading indicator of activity in manufacturing production—the purchasing managers’ index (PMI)—suggested an improving sector. The index remained in positive territory in February and March, an indication of possible continued growth in the manufacturing sector in the first few months of 2011.

The PMI rose by 2,4 index points to a 13-month high of 57,2 in March from 54,8 in January.

A reading of 50 and above represents expansion in the manufacturing sector, as opposed to a contraction if the reading is below 50.—I-Net Bridge