Manufacturing in South Africa has increased by 3.4% month-on-month according to data received for March, the Bureau for Economic Research (BER) says.
The above-average output lifted the volume index to 99.6, a level last seen in January 2020, the Bureau adds.
In its latest assessment the BER says it’s important to consider what this means contextually, as the index had dropped to 54 by April last year, the lowest level it had been on record.
In comparison, by March this year, the level of production was up by 4.6% year-on-year.
“The annual recovery was driven by the manufacturing of food and beverages, as well as motor vehicles and parts.”
The Bureau also emphasises that the manufacturing uptick should be seen against the backdrop of overall output being affected by many South African fuel refineries being closed.
“Even so, the much-better-than-expected monthly reading for total manufacturing production means that the factory sector is now likely to add positively to Q1 (first quarter) GDP growth. Before the robust March print, manufacturing was expected to subtract from GDP in the first quarter.”
