Factory production is on the upswing. Statistics SA data showed that manufacturing in January rose by 3.7% on a year-on-year basis. Analysts had expected a bigger increase, but were still encouraged by the continued upward trend.

Higher production in motor vehicles and furniture boosted the sector. An economist from Standard Bank, Dr Johan Botha says: “The number's not too bad - one would like, however, to see it a bit more diversified, because it's mainly driven by exports and also by the 2010 event in terms of the motor cars. We would like to see a bit more widely spread growth down the line.”

The forward looking Kagiso Purchasing Managers' Index also suggested continued growth in factory production. But the demand side of the economy remains depressed and calls into question future growth in manufacturing. But one thing's for certain, export demand alone won't provide the sustainable growth the manufacturing sector seeks to achieve.