June manufacturing production up 0.8% y/y vs May 4.4%

Manufacturing production in SA increased by a much lower than expected 0.8% year on year (y/y) in June after an upwardly revised 4.4% (4.2%) year-on-year rise in May‚ data released by Statistics SA on Wednesday, 8 August 2012, showed.

The 0.8% y/y increase in manufacturing production was mainly due to higher production in the petroleum‚ chemical products‚ rubber and plastic products sector‚ with a 4.3% rise and a 1.1 percentage point contribution; the food and beverages division‚ with a 2.6% increase and a 0.4 percentage point contribution; and the wood and wood products‚ paper‚ publishing and printing division‚ with 2.4% and a 0.2 percentage point contribution.

Seasonally adjusted manufacturing production decreased by 0.2% in the second quarter of this year compared with the first quarter.

Five of the 10 manufacturing divisions reported negative growth rates over this period.

The decrease was driven mainly by lower production recorded for the basic iron and steel‚ nonferrous metal products‚ metal products and machinery division (-6.2% and contributing -1.3 percentage points); the wood and wood products‚ paper‚ publishing and printing division (-4.8% and contributing -0.5 of a percentage point); and the glass and nonmetallic mineral products division (-1.2% and contributing -0.1 of a percentage point).

The seasonally adjusted sales of manufactured products at current prices decreased by 0.3% or -R976m in the second quarter of this year compared with the first quarter. Four of the 10 manufacturing divisions reported negative growth rates over this period.

The three divisions mainly responsible for the decrease in total manufacturing sales were the basic iron and steel‚ nonferrous metal products‚ metal products and machinery division; the petroleum division; and the wood and wood products division.