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· Thanks to Level 5 lockdown restrictions in April that limited South Africa’s economic activity to essential services, manufacturing output was brought down by 49.4%. The decline in March quarter was 5.4%
· Manufacturing production has been declining for 11 consecutive months, as estimated by several economic research organizations
· The Absa Purchasing Managers’ Index already signaled a record decline in business activity for the sector.
Thanks to Level 5 lockdown restrictions in April that limited South Africa’s economic activity to essential services, manufacturing output was brought down by 49.4%. The decline in the March quarter was 5.4%. The Covid-19 pandemic and lockdown regulations have had an extensive impact on economic activity,” Stats SA said in a report.
Experts were not surprised by the recent figures. Several research outfits including NKC Research had projected that manufacturing would go down by 46.1%, due to the severe strain experienced by the economy.
Manufacturing production has been declining for 11 consecutive months, as estimated by several economic research organizations. The Absa Purchasing Managers’ Index already signaled a record decline in business activity for the sector. Job losses over the course of the lockdown period were severe. There are some projections of a million
job losses by the end of the year.
Investec, a think tank says the economy may only recover to 2019 levels in 2025 with unemployment skyrocketing to 40% in the second quarter from 30.1% in the first. Data from Stats SA showed declines across the board including iron and steel industry, where production fell by 65.4%, the production of petroleum, chemical products and rubber and plastic products shrank by 41.5%, and motor vehicle production dropped by 98%. Month-on-month, production declined by 44.3% from March. Over the three months ending April, output declined by 16.9%.
