South Africa’s manufacturing output rose by an unadjusted 6,2% in volume terms year-on-year in January, compared with 5% in December, official data showed on Tuesday.
Compared with December, manufacturing production in volume terms decreased by a seasonally adjusted 0,5%, Statistics South Africa said.
In the three months to the end of January, manufacturing volumes rose by 2,8% compared with the previous three months, also on a seasonally adjusted basis.
”Manufacturing is still fairly strong. I think the weaker rand last year and strong local demand supported the sector,” said Citadel economist Salomi Odendaal.
”There seem to be some capacity constraints and that may prevent the sector from growing faster and we expect some levelling out in terms of growth in the sector,” she added.
The rand, which lost nearly 10% of its value against the dollar in 2006, was weaker at 7,4018 from 7,3890 just before the data came out.
Manufacturing is South Africa’s second largest sector, accounting for nearly 17% of gross domestic product, and is key to creating much-needed jobs in a country battling unemployment of over 25%.
It expanded 8,3% in the fourth quarter of 2006 after growing 4,7% in the third quarter and 6,3% in the second quarter of that year.
Growth for the whole of last year came in at 4,9%.
South Africa’s Purchasing Managers’ Index — a key pointer of trends in manufacturing ahead of official data — rose to 60,3 in February from 57,2 in January. — Reuters