JOHANNESBURG - Disappointing manufacturing production figures for June yesterday raised a red flag that the economy might fall into recession, with analysts saying mining data next week will give guidance to the rocky road ahead.
Data from Statistics South Africa showed that manufacturing output advanced 0.7 percent year-on-year in June of slowing from a downwardly revised 2 percent rise in the previous month – the smallest gain in industrial output in June since February.
June’s output print was also below market consensus of a 1.7 percent increase.
The slowdown in the industry was broad-based, with growth ebbing across almost all key manufacturing sub-sectors.
The sharpest decline was in the automotive sector, which fell by 3.3 percent year-on-year.