Manufacturing output in South Africa climbed by 2.9% year on year in September, following a revised 1.7% gain in August. According to Statistics South Africa, motor vehicles, parts and accessories, and other transport equipment provide the most positive contributions.
In September, factory output increased by 4.9% month on month. Analysts had projected a 2.35 percent drop in yearly terms in September, with output remaining unchanged month on month.
The petroleum, chemical products, rubber, and plastic goods category contributed the most negatively (-9.8% and contributed -2.1 percentage points).
IEskom load-shedding has been regarded as a key factor of the deterioration in the manufacturing sector and other sectors of the South African economy in recent years.
Some research, however, demonstrate that labor productivity has either decreased dramatically or stayed steady over a period of decades. According to the World Bank, the South African economy is still recovering from the impacts of the COVID-19 pandemic, but at a slower pace than predicted, with growth of 1.9% expected in 2022.
