Manufacturing did better than mining in January, but it is not really good news, as both industries are visibly weak with the latest numbers for 2024 aligning with the trend of choppy economic data throughout 2023 that indicate a stagnant economy.
Jee-A van der Linde, senior economist at Oxford Economics Africa, says national accounts data showed that the mining sector contributed positively to overall gross domestic product in the fourth quarter of 2023, growing 2.4% compared to the third quarter, buoyed by increased production of the platinum group metals chromium ore, coal and diamonds.
textiles, clothing, leather and footwear that increased 6.6% and contributing 0.2 of a percentage point and Manufacturing production increased 0.2% in the three months ended January 2024 compared to the previous three months, with seven of the 10 manufacturing divisions reporting positive growth rates over this period.
Manufacturing sales increased 1.6% in the three months ended January 2024 compared to the previous three months. The largest positive contributions were made by motor vehicles, parts and accessories and other transport equipment that increased 6.6% and contributed 1.1 percentage points and food and beverages that increased 2.5% and contributed 0.6 of a percentage point.
The Absa PMI fell by 7.3 points to 43.6 index pts in January 2024. However, Van der Linde says, the headline PMI recovered sharply in February to reach 51.7 percentage points following the extraordinarily steep drop.
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