Manufacturing output in South Africa rose 1.3% m/m in February as compared with consensus forecast for a decline of 0.2%. On yearly basis, manufacturing output grew 1.9%. February’s data reverses January’s weak data. However, the growth in February might also be due to inadequate seasonal adjustment for the leap year effect, according to Commerzbank. The official Bureau For Economic Research (BER) PMI had risen sharply to more than 50 last month from a low of 43.5 just two months back.
However, private Markit PMI dropped sharply last month, giving a confusing divergence, noted Commerzbank. Delving into details, key metals and mining industries dropped narrowly in March as compared with recent months. However, the rise in manufacturing output might reverse soon, said Commerzbank. The South African economy is likely to grow at a weaker rate of 0.9% in 2016, added Commerzbank.
