Output in the key mining and manufacturing sectors plunged, Statistics SA said. Photo: Itumeleng English
Output in the key mining and manufacturing sectors plunged, Statistics SA said. Photo: Itumeleng English

South Africa's manufacturing output falls 16.3% year on year in June

By Siphelele Dludla Time of article published Aug 11, 2020

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JOHANNESBURG - Output in the manufacturing industry remained in the contractionary territory in June despite showing signs of recovery from its unprecedented plunge in April on further easing in lockdown restrictions.

Statistics South Africa (Stats SA) said on Tuesday that manufacturing production decreased by 16.3 percent year-on-year in June, with the automotive division experiencing the biggest fall.

In April, manufacturing production had recorded its biggest annual decline, contracting by 49.4 percent year-on-year as the lockdown restrictions virtually halted economic activity.

But the further easing in lockdown restrictions in June, which allowed for a wider range of goods to be manufactured, saw increased production relative to the strict lockdown in April and May.

Stats SA said manufacturing production fell by 30.2 percent between April and June compared with the first three months of the year.

Stats SA’s director of industry, Nicolai Claassen, said all 10 manufacturing divisions registered sharp production declines in the second quarter.

Classen said the Covid-19 pandemic and lockdown regulations had an extensive impact on economic activity in the second quarter of the year.

The automotive division experienced the biggest fall, recording a 62.8 percent slump in production.

“Manufacturing output showed steady improvement since the first month of the lockdown in April, registering monthly gains of 30.4 percent in May, and 16.8 percent in June,” Classen said.

“The annual decrease in manufacturing production has also slowed to 16.3 percent in June from annual falls of 32.4 percent in May, and 43.9 percent in April.”

BUSINESS REPORT

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