The dramatic plunge in factory production eased during May and June but the sector remains deeply in negative territory
The dramatic plunge in manufacturing production slowed during May and June as SA’s beleaguered economy began the process of moving out of the harshest phase of the Covid-19 lockdown restrictions.
The annual declines were slower than those seen in April, during the worst of the lockdown when SA was kept under level 5 restrictions and only essential goods and services could be bought or produced.During that month, manufacturing production reported a 49.4% fall, surpassing the worst decline previously reported during the financial crisis in 2009.30.4% in May and 16.8% in June, Stats SA said that seasonally adjusted manufacturing production decreased by 30.
The sector, which accounts for about 13% of GDP and 10.4% of employment, was already battling before the crisis hit, contracting by 8.5% during the first quarter of the 2020 according to the latest GDP figures. The latest Absa purchasing managers index , a monthly gauge of conditions in the manufacturing sector, showed that the sector had managed to stay in positive territory for a third consecutive month during July.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hungry pupils may get food vouchers after thieves hit schoolsPupils forced to stay at home during lengthy school closures might be getting food vouchers.
Read more »
Cloud computing may be new digital banks’ unfair advantageAmazon Web Services’s technologies help new entrants such as TymeBank with a leg up over long-established players
Read more »
Rand set to end three-day losing streak amid stimulus hopesMeanwhile, Stats SA is set to release manufacturing production data for June
Read more »
MICHEL PIREU: The ins and outs of your indecisionThere are at least five reasons why you’re finding it hard to commit
Read more »
SA to feel fallout as capital investment slumps | CitypressFixed capital investments in South Africa, which are critical for economic growth and job creation, could be between 11% and 20% less than last year, economists estimate
Read more »
Quilter returns to profit amid improved net client inflowsWealth manager reports profit after tax of £43m in six months to end-June
Read more »