Power crisis cuts output

13 March 2015 - 02:37 By Ntsakisi Maswanganyi
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Manufacturing output fell in January with major causes being lower production of food and beverages, glass and non-metallic mineral products, petroleum, and communications and professional-use equipment.

Statistics SA data showed yesterday that manufacturing decreased by 2.3% in January compared with January last year after increasing by 0.9% in December.

Severe Eskom load-shedding in January and muted global demand are among the factors weighing on output.

Seasonally adjusted manufacturing decreased by 0.6% in the three months to the end of January 2015 compared with the previous three months, with five of the 10 manufacturing divisions reporting contracting output for the period.

The main contributors to the 0.6% decrease were vehicles and vehicle parts and accessories, and other transport equipment, furniture and products of "other manufacturing".

Mining fell sharply in January in the gold and platinum divisions.

Barclays Africa economists said the latest mining and manufacturing data provided "a useful indication of the severity of the adverse effects of the power outages on output".

The manufacturing sector's stake in the economy has shrunk from more than 16% in 2009 to 13.7% in the fourth quarter of last year, according to gross domestic product numbers published by Stats SA.

Economists at Nedbank said the latest manufacturing figures "will do little to allay concerns about the growth outlook.

BDLive

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