Grocott's Mail
    Facebook Twitter Instagram
    Saturday, June 14
    Facebook Twitter Instagram
    Grocott's Mail
    • NEWS
      • Courts & Crime
      • Features
      • Politics
      • People
      • Health & Well-being
    • SPORT
      • News
      • Results
      • Sports Diary
      • Club Contacts
      • Columns
      • Sport Galleries
      • Sport Videos
    • OPINION
      • Election Connection
      • Makana Voices
      • Deur ‘n Gekleurde Bril
      • Newtown… Old Eyes
      • Incisive View
      • Your Say
    • ARTSLIFE
      • Cue
        • Cue Archives
      • Makana Sharp!
      • Visual Art
      • Literature
      • Food
      • Festivals
      • Community Arts
      • Going Places
    • OUR TOWN
      • What’s on
      • Spiritual
      • Emergency & Well-being
      • Covid-19
      • Safety
      • Civic
      • Municipality
      • Weather
      • Properties
        • Grahamstown Properties
      • Your Town, Our Town
    • OUTSIDE
      • Enviro News
      • Gardening
      • Farming
      • Science
      • Conservation
      • Motoring
      • Pets/Animals
    • ECONOMIX
      • Business News
      • Entrepreneurship
      • Personal Finance
    • EDUCATION
      • Education NEWS
      • Education OUR TOWN
      • Education INFO
    • EDITORIAL
    Grocott's Mail
    You are at:Home»ECONOMIX»Business News»May data confirms manufacturing recovery
    Business News

    May data confirms manufacturing recovery

    Helmo PreussBy Helmo PreussJuly 11, 2017Updated:July 11, 2017No Comments2 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email

    By Helmo Preuss

    After three consecutive quarters in which manufacturing production acted as a drag on gross domestic product (GDP) growth, the May 2017 data released by Statistics South Africa (Stats SA) showed that a recovery was under way in the second quarter.

    Economists have been worried that manufacturing production would continue to disappoint and on a year ago basis, manufacturing production is down 1.6% in the first five months of 2017. In South Africa however we follow the American and European practice of focusing on the quarterly change, rather than the year ago change, which is used by most African and Asian countries. Stats SA reports both measures, but the media focus is on the quarterly change, as that is what equity dealers, who are schooled in American valuation methodology, look at.

    On the quarterly change front, the average of the second quarter so far is that manufacturing production grew by 6.7% on a seasonally adjusted annualised rate (saar) after contracting by 3.0% in the first quarter. The June data must still be released and there could be revisions to the April and May data, so the 6.7% increase for the second quarter is not cast in stone. The manufacturing purchasing managers index (PMI) survey indicated a drop in June compared with May, but there is no one-to-one relationship between the PMI and the Stats SA manufacturing data. For instance, the April PMI showed a sharp monthly drop after the late March cabinet reshuffle, while the Stats SA April manufacturing data reflected a strong monthly increase.

    The June manufacturing production data will be released on 10 August and the second quarter GDP data on 5 September.

    Previous ArticlePolicy uncertainty rose in the second quarter, but still below Nenegate
    Next Article Tractor sales jump by 24% y/y in June
    Helmo Preuss
    • Website

    Comments are closed.

    Code of Ethics and Conduct
    GROCOTT’S SUBSCRIPTION
    RMR
    Listen to RMR


    Humans of Makhanda

    Humans of Makhanda

    Weather    |     About     |     Advertise     |     Subscribe     |     Contact     |     Support Grocott’s Mail

    © 2025 Maintained by School of Journalism & Media Studies.

    Type above and press Enter to search. Press Esc to cancel.