SA production drops in second quarter
When compared to last year’s results, production fell by 0.4 percent in June this year compared to June last year, StatsSA reported on Tuesday.
Petroleum, chemical, rubber and plastic products recorded the largest decline and fell by 4.9 percent on a year-on-year basis while basic iron, steel, non-ferrous metal products, metal products and machinery fell by 3.4 percent. Car parts, accessories and other transport equipment rose by 10.4 percent, reflecting the continued trend of spending on maintenance rather than on the purchase of new cars and corporate fleets.
StatsSA noted that production in food and beverages rose by 2.8 percent.
On a quarterly basis, six of the ten divisions showed negative growth with iron and basic steel falling by 4.4 percent. This will be a deeply worrisome trend for government and commentators as manufacturing is seen a key source of job creation now that mining is in a terminal decline due to low commodity prices.
- ANA