SA MANUFACTURING SECTOR SEES ITS 7TH MONTH OF GROWTH DECLINES

Production in the sector plummeted by almost 6% year-on-year in December.

manufacturing, steel generic. Picture: freeimages.com

 

Production in the sector plummeted by almost 6% year-on-year in December.

This is the biggest drop in the sector in recent months.

FNB senior economist Geoff Notling said: “All manufacturing divisions recorded negative growth in December. The largest detractors, which were motor vehicles parts and accessories, declined by 24.9% year-on-year while petroleum and chemical products declined by 5.9% year-on-year.”

He said load shedding contributed towards the contraction: “What we found with our models is that electricity output declined and so did manufacturing. The occurrence of stage 2 load shedding certainly detracted manufacturing output.”

 

Source:Eyewitness News

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