Manufacturing's rate of decline moderates

2010/01/12

The rate of decline in the manufacturing production sector moderated during November 2009, Statistics SA said on Tuesday.

According to the Pretoria-based agency, manufacturing production declined annually by 4.7 percent for November compared to a revised -9.6 percent in October 2009. "Although the year-on-year growth rate in manufacturing production remained negative, this was the least negative annual growth rate recorded so far in 2009," Statistics SA said. A decline of 5.6 percent year-on-year had been expected.

According to economists, the slowing rate of decline in factory output is an indication that the country's manufacturing production is on the mend.

Statistics SA said November's decrease of 4.7 percent was mainly due to lower production in the wood and wood products, paper, publishing and printing division (-17.2 percent and contributing -1.9 percentage points).

This was followed by the furniture and other manufacturing division (-15.2 percent and contributing -0.9 of a percentage point), the petroleum, chemical products, rubber and plastic products division (-3.1 percent and contributing -0.8 of a percentage point), the basic iron and steel, non-ferrous metal products, metal products and machinery division (-2.5 percent) and the textiles, clothing, leather and footwear division (-9.2 percent and each contributing -0.5 of a percentage point). (Source : Sapa)