SA June factory output up 0.5% year-on-year

Johannesburg - South Africa's manufacturing production unexpectedly grew by 0.5% year-on-year in volume terms in June after contracting by a revised 3.8% in May, Statistics South Africa said on Thursday.

On a month-on-month basis, factory production was up 1.4%, but fell 0.4% in the three months to June compared with the previous three months.

Economists polled by Reuters expected factory output to contract by 2.1% year-on-year in June and by 1% on a month-on-month basis.

The 0,5% year-on-year increase in manufacturing production in June 2014 was mainly due to higher production in the following divisions:

-petroleum, chemical products, rubber and plastic products (3,9%)
- food and beverages (3,2%)

The motor vehicles, parts and accessories and other transport equipment division (-11,3%) was a significant negative contributor.

Six of the ten manufacturing divisions reported negative growth rates over this period.

The largest negative contributions to the decrease were made by the following divisions:

- motor vehicles, parts and accessories and other transport equipment (-6,1% )
- petroleum, chemical products, rubber and plastic products (-1,7%).

- Reuters and Fin24.