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The manufacturing sector in South Africa rose by 2.9% from a year earlier in September of 2022, according to Statistics South Africa. Importantly, it is the third straight month of increase, while the market expectation was a 2.35% decline. The growth was made possible by the positive contributions from the manufacture of motor vehicles, parts, accessories, and other transport equipment (43.2% vs 20.1% in August) and food and beverages (8.1% vs -3.8%)
The manufacturing sector in South Africa rose by 2.9% from a year earlier in September of 2022, according to Statistics South Africa. Importantly, it is the third straight month of increase, while the market expectation was a 2.35% decline. The growth was made possible by the positive contributions from the manufacture of motor vehicles, parts, accessories, and other transport equipment (43.2% vs 20.1% in August) and food and beverages (8.1% vs -3.8%). Manufacturing (factory) output grew by 4.9% in September, on a seasonally adjusted monthly basis, the most in ten months, while markets had expected it to stagnate.
The largest negative contribution was made by the petroleum, chemical products, rubber, and plastic products division (-9.8% and contributing -2.1 percentage points). The Eskom load-shedding was a major cause of the decline in the manufacturing sector and other sectors of the economy in South Africa.
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There are studies that reveal labour productivity has either significantly reduced or remained flat over a number of decades. According to the World Bank, the South African economy continues to recover from the effects of the COVID-19 pandemic, but at a slower pace than expected. The growth is estimated at 1.9% in 2022, which looks possible due to the consistent recovery of the economy.
