SA manufacturing output falls 1.1% in year to November

Output in the domestic manufacturing sector fell by 1.1% on an annual basis in November 2022, data released by Statistics South Africa showed on Tuesday. But a 2% spurt in production compared to October signals the sector is not completely on the ropes. 

The annual decline of 1.1% was the first since July, a worrying sign that the surge in rolling blackouts is dimming a sector that is power-intensive. You simply can’t make stuff without electricity unless you revert to earlier models of production. 

Still, markets had expected a much worse number, with the Bloomberg consensus forecast pegging a 3.5% decline.  



On a monthly basis, there was a 2% bounce in November after a 6.2% fall in October. This indicates that the sector may have been overwhelmed by the outages in October, but the November spurt was off a low base after the tumble the previous month. 

There are still some green shoots in the face of an array of challenges. 

The motor vehicles, parts and accessories component of the industry saw a 13.4% rise in production in November as the global and domestic auto sectors slowly shift into a higher gear.