Talking Points:
- Manufacturing Production decreased 2.3% (y/y) in January 2015
- Sales of Manufactured goods fell by 1.9% in the 3 months to January 2015
- 1 H chart USDZAR retraces within a channel
Production activity in South Africa continues to suffer in January; not only has mining activity declined but so too has manufacturing output.
Preliminary statistics indicate that production decreased by 2.3% in January 2015 when measure year-over-year. Weighted the following factors contributed to the slide: radio/television/communication apparatus (-0.5 pp) food and beverages (-0.5 pp) and petroleum/chemical/plastic products (-0.4 pp).
When added to the quarter beginning in November, production fell by 0.6% when seasonally adjusted. Of the ten divisions reviewed, half reported negative growth rates; most notable, motor vehicles and other transport equipment (-5.1%) and furniture and ‘other’ manufacturing products (-6.6%).
Sales of manufactured goods also experienced a setback, declining 1.9% in the 3 months November to January. In this category, negative growth rates pertaining to the sale of motor vehicles (-8.9%) and basic iron, steel and metal products/machinery proved to be the most detrimental.
USD/ZAR 1 Hour Chart
Chart Created by Walker England Using MarketScope2.0
