Manufacturing production decreased by 7.8% year-on-year in April, with the single largest drag on output being the motor vehicles, parts and accessories and other transport equipment sector, declining by 28.6% and contributing -3.3 percentage points.

This may be as a result of automotive manufacturing operations halting production when devastating flash flooding occurred in KwaZulu-Natal. Toyota South Africa Motors, for one, was expected to lose 45 000 production units.

The petroleum, chemical products, rubber and plastic products sector also reported a lower output of 10.3% in April, and dampened overall manufacturing production by -2.2 percentage points.

Food and beverages ended up 3.7% lower in April, and contributed -0.9 of a percentage point to headline figures, as well as basic iron and steel, nonferrous metal products, metal products and machinery, which contracted by 4.4% and contributed -0.9 of a percentage point.

Seasonally adjusted manufacturing production decreased by 5.4% in April,  compared with March. This followed month-on-month changes of 0.3% in March and -1.5% in February.

In the three months ended April 30, seasonally adjusted manufacturing production decreased by 0.9%, compared with the preceding three months.

During this period, seven of the ten manufacturing divisions reported negative growth rates, led by wood and wood products, paper, publishing and printing, shrinking output by 6.3% and contributing -0.6 of a percentage point.

Again, the motor vehicles and basic iron and steel sectors dragged on manufacturing output numbers, with declines over the three-month period of 3.3% and 2.1%, respectively.

The petroleum sector had been a positive contributor for the three months ended April 30, growing output by 2.6% and contributing 0.6 of a percentage point.

Nedbank says the massive manufacturing production decline of 7.8% in April, from a revised -0.6% in March, was worse than its forecast of -5%. The bank says the motor vehicle category’s decline was the worst since August 2020, reflecting the aftermath of intense flooding in KwaZulu-Natal.

MANUFACTURING SALES

Statistics South Africa reports that seasonally adjusted manufacturing sales decreased by 3.2% in April, compared with March.

This followed month-on-month changes of 3.1% in March and -0.2% in February.

Seasonally adjusted manufacturing sales increased by 4.2% in the three months ended April 30, compared with the preceding three months.

The largest positive contributors were the motor vehicles sector selling 15.2% more and contributing 1.9 percentage points, and the petroleum sector reporting 6.8% higher sales and contributing 1.2 percentage points.