South Africa’s manufacturing output shrunk by 11,1% year-on-year (y/y) in volume terms in January compared with a 7,1% contraction in December, official data showed on Thursday.
Compared with December, manufacturing production in volume terms contracted by a seasonally adjusted 1,2% in January, Statistics South Africa said.
Manufacturing output was down 8,1% in the three months to January compared with the previous three months, also on a seasonally adjusted basis.
Lower production levels were reported by all 10 manufacturing divisions during the last three months.
The decrease was driven mainly by lower production in three divisions, namely basic iron and steel, non-ferrous metal products, metal products and machinery (contributing -3,0 percentage points), motor vehicles, parts and accessories and other transport equipment (contributing -2,0 percentage points) and petroleum, chemical products, rubber and plastic products (contributing -1,5 percentage points).
The 11,1% decrease in manufacturing production in January 2009 compared with January 2008 was mainly due to lower production in the basic iron and steel, non-ferrous metal products, metal products and machinery division (- 21,5% and contributing -4,8 percentage points), followed by the motor vehicles, parts and accessories and other transport equipment division (-40,3% and contributing -3,5 percentage points) and the furniture and ”other” manufacturing division (-21,6% and contributing -1,3 percentage points).
The food and beverages division partly counteracted the decrease with a reported increase of 2,5% (contributing 0,4 of a percentage point).
The total value of sales of manufactured products in January was reported down 5,1% y/y to R82,832-billion.
On a seasonally adjusted basis sales were down 5,1% y/y to R97,963-billion. — I-Net Bridge, Reuters