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Manufacturing production declined by 0.4% in June

Manufacturing production declined by 0.4% in June compared with June 2014‚ after falling by 1.6% in May — three consecutive months of decline.

“Today’s release of June’s manufacturing figures would have been closely monitored by observers to see if China’s slowdown had started to hit the sector in earnest‚” UFX.com MD Dennis de Jong said.

“A weaker rand should help stimulate exports going forward but the impending US interest rate rise‚ combined with a drastic scaling back of Chinese activity‚ will give (Finance Minister Nhlanhla) Nene and Co food for thought.

 “It will certainly be a difficult few months ahead for the South African manufacturing industry‚ but we won’t know precisely how difficult until the figures for July and August are released.”

Stats SA said the largest negative contributions to the year-on-year decrease in manufacturing production were made by: petroleum‚ chemical products‚ rubber and plastic products (-4‚9% and contributing -1‚1 percentage points); and basic iron and steel‚ non-ferrous metal products‚ metal products and machinery (-3‚4% and contributing -0‚7 of a percentage point).

Large positive contributions were made by: motor vehicles‚ parts and accessories and other transport equipment (10‚4% and contributing 0‚8 of a percentage point); and food and beverages (2‚8% and contributing 0‚7 of a percentage point).

Stats SA said seasonally adjusted manufacturing production had decreased by 1‚2% in the second quarter of 2015 compared with the first quarter of 2015.

Six of the ten manufacturing divisions had reported negative growth rates over this period.

 The largest contributions to the 1‚2% quarter-on-quarter decrease in manufacturing production were made by basic iron and steel‚ non-ferrous metal products‚ metal products and machinery (-4‚4% and contributing -0‚8 of a percentage point); and petroleum‚ chemical products‚ rubber and plastic products (-3‚3% and contributing -0‚7 of a percentage point).

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