Share

Strikes hit factory output

Johannesburg - Manufacturing output tumbled to its worst level in six months in September, mainly because of strikes which started in the mining sector, surprising economists who had not expected such a big fall.

Output contracted 1.1% year-on-year in September, while August manufacturing was revised 0.2 percentage points lower to a 2.8% expansion, Statistics South Africa said on Thursday.

Economists polled by Reuters had expected output to fall 0.5% in September.

"The industrial strikes have begun to take their toll on domestic figures," said Anisha Arora, emerging markets analyst at 4Cast.

"Strike action rapidly spread from mining to manufacturing and even the services sector well into October, closing plants and operations for weeks and resulting in vast losses of production volumes."

Manufacturing contributes about 15% of gross domestic product and is a major employer in a country where over 25% of the labour force is without jobs.

Official statistics last week showed 197 000 more people had lost jobs in the third quarter of this year.

On a month-on-month basis Statistics South Africa said production fell by a seasonally adjusted 2.3% but grew slightly by 0.3% in the three months to September compared with the previous quarter.

The Kagiso PMI, a key manufacturing indicator ahead of official statistics, has contracted since September and fell to its lowest level in over a year in October, pointing to a bleak outlook for the sector.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.89
+0.0%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
908.75
+1.3%
Palladium
1,014.28
+1.3%
Gold
2,219.42
+1.1%
Silver
24.83
+0.8%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders