South Africa's manufacturing output jumps, boosting rand
South Africa's manufacturing output rose more than expected in October to its highest level since June 2016, data showed on Tuesday, lifting the rand as the economy showed further signs of recovering from recession.
Africa's most industrialised economy slipped into recession after contractions in the first two quarters of the year, but bounced back strongly in the third as the manufacturing, agriculture and retail sales sectors grew.
Manufacturing output rose by 3% year-on-year in October, driven by better vehicle and metals production, the statistics agency said.
The rand added to its earlier gains, advancing to 14.3450 per dollar from 14.40 just prior to the data's release.
Motor vehicles, parts and accessories rose 14%, food and beverages was up 6%, while basic iron and steel product grew 3.2%.
Mining data earlier showed the output in the ailing industry had stabilised slightly, rising 0.5% year-on-year in the month.
Manufacturing accounts for 14% of gross domestic product and mining 8%. Both have been drivers of a primary sector slump blamed on low business and consumer confidence as well as political and policy uncertainty.
"It was a broad based recovery and not focused on one sector, and a first indication that things are beginning to turnaround for the better in the sector," said Elize Kruger at NKC African Economics.
"However, there are still many headwinds like higher fuel prices, although they have come down now in December, which could contribute to a better environment," Kruger said.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Since 1919, Victaulic’s innovative solutions and design services continue to increase construction productivity and reduce risk, ensuring projects...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
