Johannesburg – Manufacturing production for March eked out growth of 0.3% for the year.
This is according to sales and production data released by Statistics South Africa on Thursday.
The data shows a 0.6% drop since February.
The main contributor to the increased production was 6% growth in iron, steel, non-ferrous metal products, metal products and machinery.
Other contributors to production growth include glass and non-metallic mineral products by 10.5%, and motor vehicles, parts and accessories and other transport equipment by 5.8%. Collectively these products contributed almost 2% growth, explained FNB economist Jason Muscat.
However petroleum, chemical products, rubber and plastic products dragged down the sector’s production levels. These products were down 5.3% in March.
Other negative contributors include wood and wood products, paper, publishing and printing down 2% and electrical machinery 10.2% lower. Food and beverage production came down 0.3%.
Muscat explained that exported products seem to have performed better than goods produced for domestic demand. “[It] reflects the divergence between an improving global outlook against a subdued local backdrop,” he said.
FNB expects the sector’s GDP to decline 4% for the quarter. This will take off 1% of total GDP.
READ: SA possibly in technical recession – analyst
Previously, given February’s data, Muscat suggested the country may be heading for a technical recession if there was no turnaround in March.