Africa > Southern Africa > South Africa > South Africa's manufacturing output flat, points to slowing economy

South Africa: South Africa's manufacturing output flat, points to slowing economy

2016/11/16

South Africa's factory output was flat in September from a year ago, data showed on Thursday, contrasting strong second quarter economic increase and increasing the risk of a credit rating downgrade.

Separately, mining output increased by 3.4 % year-on-year in September . But analysts said this was not sustainable as commodity prices struggle to recover.

Manufacturing output was flat at 0.0 % year-on-year in September, next expanding by 2.2 % in August, Statistics South Africa said. Economists polled by Reuters estimate a 0.1 % year-on-year increase in manufacturing volumes.

On a month-on-month basis, factory production was up 1.5 % but edged down 1.3 % in the three months to September compared with the previous three months.

Capital Economics Africa economist John Ashbourne said in a note that retail figures due next week would give an better idea of how the economy was performing but "the available survey data suggest that consumer spending probably remained weak."

The economy expanded by 3.3 % in the second quarter of 2016 next a contraction in the initial quarter, and Treasury sees it expanding by 0.5 % this year.

The central bank has said weak increase and political disturbances risked South Africa's credit rating. Ratings agencies are due to review South Africa's rating before the end of the year. Moody's rates South Africa two notches above subinvestment grade, while Fitch and S&P World Ratings have it just a step above "junk".

Related Articles
  • South Africa's credit ratings remains unchanged-Fitch

    2017/11/27 Ratings firm Fitch kept both South Africa’s local and foreign currency credit ratings unchanged at BB+, one notch below investment grade, with a stable outlook, the agency said on Thursday. In April, Fitch downgraded South Africa’s credit rating to sub-investment grade next Zuma abruptly fired Pravin Gordhan as finance minister, saying it would likely result in a change in economic policy direction.
  • South Africa: Meet Masiphumelele's Budding Violinists

    2017/11/18 In a small classroom learners from Masiphumelele are learning a new skill: playing the violin. The outreach program, that takes place on the campus of non-profit organisation Masiphumelele Corporation, is run by Titia Blake. "I'm trying to teach children to do what I do, and that is to play for weddings and functions," she says. Blake believes that education is the only way to solve the ills of society. "And my specialty is the violin and therefore the violin program."
  • HSBC 'complicit' in South Africa scandal, House of Lords told

    2017/11/04 HSBC has been accused of “possible criminal complicity” in a money laundering scandal involving South Africa’s wealthy Gupta family. Speaking in the Home of Lords on Wednesday, two weeks next he initial voiced concerns about UK links to the probe, Lord Hain said he had handed new evidence to the chancellor about the alleged involvement of a British bank in the “flagrant robbery” of South African taxpayers. Hain did not mention the name the bank in the Lords but did so in a letter to the Philip Hammond, in which he said the bank should be investigated over “possible criminal complicity” in corruption.
  • Namibia Scraps Visas for Africans

    2017/11/01 Namibia has gotten the ball rolling on plans to scrap visa requirements for African passport holders next Cabinet authorised the implementation of this process - to be carried out in line with diplomatic procedures. Namibia will any minute at this time start issuing African passport holders with visas on arrival at ports of entry as a initial step towards the eventual abolition of all visa requirements for all Africans.
  • Africa: Experts Explore Infrastructure and Cooperation to Improve Lives

    2017/11/01 Addis Ababa — African economies require structural transformation to attain sustained increase that trickles down to all its peoples, an official from the United Nations Economic Commission for Africa (ECA) told experts gathered at the organization’s Ethiopian headquarters. Soteri Gatera, who heads the ECA’s Industrialization and Infrastructure Section, says only such “inclusive” economic increase will help resolve the “persistent social economic problems” Africa faces.