JOHANNESBURG, 12 OCTOBER 2020 – The latest production data for the manufacturing sector released by Statistics South Africa today reflects the resilience of the Metals and Engineering (M&E) cluster of sub-industries on a month-on-month basis, said Steel and Engineering Industries Federation of Southern Africa Chief Economist Michael Ade.
However, he said, the figures painted a worrisome annual trend as the recession deepened amid the COVID-19 pandemic.
Dr Ade said although the seasonally-adjusted monthly manufacturing output data had surprisingly continued to trend in positive territory from May, underpinned by improving business sentiment, the presence of headwinds from the months of the COVID-19-induced economic lockdown, the fear of contagion, a generally weak exchange rate and a stubbornly stagnant economy had led to poor year-on-year data.