Output remains negative after contraction and load shedding

JOHANNESBURG – Manufacturing output remained in negative territory as industry battled headwinds, recording another contraction in January.

Statistics South Africa said yesterday that manufacturing production had fallen 2percent year-on-year after decreasing 5.9percent in December.

The January print is the eighth consecutive month of annual growth declines in the manufacturing activity.

Investec economist Lara Hodes said the output was reflective of South Africa’s delicate economic situation, underpinned by weak demand and exacerbated by global challenges.

“Domestically, heightened electricity supply disruptions continue to weigh on production, while household balance sheets, impacted by elevated unemployment rates, impede consumer demand,” Hodes said.