Output from SA’s manufacturing sector, which accounts for about an eighth of SA’s economy, has recovered mildly, with production increasing 0.8% in January 2017 compared with January 2016. This was the first sign of growth in the manufacturing sector after having fallen for 15 consecutive months. Mining and manufacturing output are two major pointers for the economy’s growth prospects. With production in both sectors looking up, SA may be on track for the Treasury’s 1.3% growth forecast for 2017. Manufacturing production shrank 1.1% in the last quarter of 2016 — worse than economists’ projections. Production fell 2% in December 2016 month on month. The largest positive contributions were made by the following divisions: • Basic iron and steel, nonferrous metal products, metal products and machinery, which contributed 0.6 of a percentage point. • Petroleum, chemicals, rubber and plastic products, which contributed 0.5 of a percentage point. • Furniture and "other" manufacturing, whic...
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