SA May manufacturing production down 1.4% y/y

© Christopher Alleaume – 123RF.com

Output declined by 1.4% in May 2015 compared with May 2014, after falling by 2.1% in April.

Barclays said in a research note earlier that while these data releases were often an important indication of the direction and magnitude of overall gross domestic product growth, they have recently been volatile, reflecting the unpredictable effects of electricity power cuts.

The 1.4% decrease was mainly due to lower production in basic iron and steel; non-ferrous metal products; metal products and machinery.

Seasonally adjusted manufacturing production decreased by 0.3% in the three months ended May 2015 compared with the previous three months, with five of the 10 manufacturing divisions having reported negative growth rates over the period.