Tue. Jul 23rd, 2019

Stats SA survey report: Manufacturing sales drop while production steadies

A slump in sales in South Africa’s manufacturing sector holds a grim outlook for the growth of the economy.

stats sa survey report manufacturing sales drop while production steadies - Stats SA survey report: Manufacturing sales drop while production steadies

Statistics South Africa (Stats SA) has published its preliminary survey report on manufacturing production and sales figures for the period leading up to May 2019.

The national statistics entity revealed that the report was based on monthly survey data collected from manufacturing enterprises in:

  • manufacturing, processing, making or packing of products;
  • slaughtering of animals, including poultry; and
  • installation, assembly, completion, repair and related work

“The results of the monthly manufacturing production and sales survey are used to calculate the volume of manufacturing production indices in order to estimate the gross domestic product (GDP) and its components, which in turn are used to develop and monitor government policy. These indices provide an indicator of the real level of manufacturing activity in the economy,” Stats SA noted in its report.

Stats SA: Manufacturing production results, May 2019

Compared to the same period in 2018, the national statistics entity noted an increase in production. In May 2019, manufacturing production closed the quarter with a 1% increase.

The largest positive contributor to the growth in production came from the food and beverage industry with 6.7% and contributing 1.8 percentage points.

“The largest negative contribution was made by the wood and wood products, paper, publishing and printing division (-3,9% and contributing -0,4 of a percentage point).”

Statistics South Africa, Manufacturing: Production and sales preliminary report for May 2019

5ca31aec table 3 - Stats SA survey report: Manufacturing sales drop while production steadies

Increases in seasonally-adjusted production were seen in food and beverages, petroleum, basic iron and steel, and communication apparatus, making for a cumulative percentage point growth of 0.8.

“Seasonally adjusted manufacturing production increased by 0,3% in the three months ended May 2019 compared with the previous three months. Five of the ten manufacturing divisions reported positive growth rates over this period.”

Statistics South Africa, Manufacturing: Production and sales preliminary report for May 2019

5253a423 table 5 - Stats SA survey report: Manufacturing sales drop while production steadies

Manufacturing sales results, May 2019

While production figures looked relatively positive, sales figures showed a slight decline.

Year-on-year manufacturing sales at current prices showed a 0.7% decrease between December 2018 and May 2019, suffering its biggest slump in the observed month with a 10.1% drop from April.

81c427d1 table 4 - Stats SA survey report: Manufacturing sales drop while production steadies

“Seasonally adjusted manufacturing sales decreased by 3,0% in May 2019 compared with April 2019. This followed month-on-month changes of 3,0% in April 2019 and 1,3% in March 2019.”

Statistics South Africa, Manufacturing: Production and sales preliminary report for May 2019

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