The manufacturing sector has surprised market forecasts with better-than-expected growth. Four of the 10 divisions reported positive growth.
The sector recorded a 3.4% increase for April on a year-on-year basis and a 0.5 percent growth between March and April, ahead of forecasts.
The largest contributions were basic iron and steel, food and beverages, petroleum and motor vehicle parts and accessories.
Market Fund Manager at Makwe Fund Managers Makwe Masilela explains.
“Our manufacturing production surprised us because it was better than market forecasts. We expected that to go up by 2.5% but it managed to up by a nice 3.4%. This is the first annual gain in six months and yes the largest contributors continue to be your basic iron ore and steel and also food and beverages and remember this is the very same manufacturing which also had a very positive contribution when it comes to our quarter one GDP.”
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