Manufacturing sector continues to strengthen

GROWTH PROSPECTS for the South African manufacturing sector continue, according to the manufacturing figures for February 2007 by Stats SA. Manufacturing production and sales in February 2007 increased by 7.1% year-onyear, compared to January where the annual increase was 5.8%. However January yielded higher production levels, compared to February where eight manufacturing divisions registered growth. Sales of manufacturing products increased by 19.5% or R39 268 million in the first three months to February. The petroleum, chemical products, rubber and plastic products divisions contributed to this growth. According to Absa economist Bashni Chetty, the manufacturing sector will continue its good performance. This will be driven mainly by the weaker rand. The Bureau of Economic Research’s first quarter findings for 2007 showed business confidence levels in the manufacturing sector were likely to continue increasing in the coming months mainly because of the large infrastructure spending.