Manufacturing output for December 2008 fell by 7% year-on-year, Statistics South Africa said on Tuesday.
This was the largest drop in ten years as the demand for exports fell.
Manufacturing output fell 5,8% in the three months to December compared with the previous three months, the Pretoria-based agency added.
”This is another poor number — particularly the quarter on quarter figure — it’s close to 6% and this will be a drag on gross domestic product [GDP],” said economist Russell Lamberti.
He said it was definitely cause for another rate cut.
”I don’t think the South African Reserve Bank [SARB] will necessarily wait for GDP numbers to announce that they’ve brought forward the next monetary policy committee meeting.
”Of course the GDP figures may form part of the decision but the SARB is probably looking to coordinate its policies globally with other central banks,” Lamberti said. — Sapa