Manufacturing development far lower than anticipated

The manufacturing sector observed lukewarm development toward the beginning of 2019.

Manufacturing generation became only 0.3% in January 2019, far beneath the Bloomberg agreement of 1.2%, after repressed development of 0.1% in December 2018.

The greatest development drivers were a 2.9% ascent in food and beverages, and a 0.9% uptick in petroleum, chemical products, rubber and plastic products.

Statistics SA’s manufacturing production index, which was at 100 points in 2015, came to 87.7 points in January, down from 93.8 points in December.

The month to month changes in factory output estimated by Statistics SA normally will in general be foreshadowed by the Absa-supported purchasing managers index (PMI), which is distributed on the first business day of every month.

The PMI, which measures movement in the manufacturing industry, facilitated to 49.9 points in January 2019 in the wake of achieving its largest amount for 2018 of 50.7 in December — the first run through since May 2017 that the index breached the neutral 50 mark.

In any case, in recent months, she PMI and creation figures have not been tandem.