New data lift economists’ hopes
As momentum returns to the manufacturing sector, a small contraction in May is unlikely to derail GDP growth in second quarter
Despite a marginal contraction in manufacturing in May, economists are upbeat that the struggling sector will not derail overall GDP growth for 2017’s second quarter too severely. Manufacturing production fell 0.8% in May compared with May 2016. That occurred while seasonally adjusted manufacturing production decreased a slight 0.3% in May 2017 compared with April 2017. BNP Paribas’s Jeff Schultz said some momentum was returning to the sector. "Though headline manufacturing production growth remained in the doldrums in May, we are at least encouraged by the fact that momentum growth has finally climbed back into positive territory," he said. Economic growth was expected to be positive in the second quarter of 2017 despite the "slight slump" in manufacturing, Schultz said. "Though off a low base, this spells relatively good news for the second-quarter production-side GDP following the dismal performance in the first quarter where the sector was one of the largest factors behind SA sl...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.