South African manufacturing 2.5% higher than in May last year

Manufacturing output increased by 2.5% year-on-year in May, according to data from Statistics South Africa published on Tuesday. 

This is the second successive annual gain in industrial activity after factory output rose by 3.6% in April 2023 compared with the same month in 2022.

The data is in line with a forecast from Nedbank economists who said power outages, slower domestic and global demand and lower commodity prices continued to weigh on output but manufacturing production was expected to rise moderately off last year’s low base.

The low base was established in mid-2022 when devastating floods in KwaZulu-Natal disrupted supply.

The largest contributors to the May figure were motor vehicles, parts and accessories and other transport equipment (15% increase) and basic iron and steel, non-ferrous metal products, metal products and machinery (5.8% increase).

However, on a month-on-month basis, factory output contracted by 1.3% in May, after ticking up 0.7% in April.