{"id":717662,"date":"2023-09-12T06:00:00","date_gmt":"2023-09-12T04:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=717662"},"modified":"2023-09-11T16:07:21","modified_gmt":"2023-09-11T14:07:21","slug":"danger-ahead-for-south-africas-economy","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/717662\/danger-ahead-for-south-africas-economy\/","title":{"rendered":"Danger ahead for South Africa&#8217;s economy"},"content":{"rendered":"\n<p>Manufacturing is one of South Africa&#8217;s most important sectors, but a worse-than-expected decline in July spells trouble for South Africa&#8217;s GDP in Q3.  <\/p>\n\n\n\n<p>Stats SA said that South Africa&#8217;s GDP grew by 0.6% in Q2 2023, with manufacturing and finance driving this growth. <\/p>\n\n\n\n<p>Manufacturing in Q2 saw an industry growth rate of 2.2%, contributing 0.3% to the overall growth of the economy &#8211; the most of any sector. <\/p>\n\n\n\n<p>However, with intensified bouts of load shedding and the N3 truck attacks in July, there were fears that the manufacturing sector would be hurt. <\/p>\n\n\n\n<p>\u201cBased on the Absa PMI data for July and August, this impacted supplier delivery times and probably weighed on manufacturing output,\u201d the Bureau for Economic Research said.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"Ji0IHnO8ka\"><a href=\"https:\/\/businesstech.co.za\/news\/trending\/708310\/business-activity-in-south-africa-takes-a-hit-as-trucks-come-under-fire\/\">Business activity in South Africa takes a hit as trucks come under fire<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Business activity in South Africa takes a hit as trucks come under fire&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/trending\/708310\/business-activity-in-south-africa-takes-a-hit-as-trucks-come-under-fire\/embed\/#?secret=P9LjvU4yuv#?secret=Ji0IHnO8ka\" data-secret=\"Ji0IHnO8ka\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Despite the existing concerns, manufacturing production was worse than the economists predicted. <\/p>\n\n\n\n<p>Stats SA said that manufacturing production increased by <strong>2.3% in July 2023 compared to July 2022<\/strong>. <\/p>\n\n\n\n<p>The largest contributors were: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>petroleum, chemical products, rubber and plastic products&nbsp;(6,8% and contributing 1,4 percentage points); <\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>motor vehicles, parts and accessories and other transport equipment&nbsp;(9,5% and contributing 1,0 percentage point).<\/li>\n<\/ul>\n\n\n\n<p>Although manufacturing did see year-on-year growth, <strong>production is far lower than the 4.5% and 4.8% predicted by economists at Nedbank and the BER, respectively.<\/strong> <\/p>\n\n\n\n<p>In addition, seasonally adjusted manufacturing production <strong>declined by 1.6% from June 2023 to July 2023<\/strong>.  <\/p>\n\n\n\n<p>This is again <strong>far lower than the 0.5% and 0.8% month-on-month increases<\/strong> that economists at the BER and Nedbank predicted, respectively. <\/p>\n\n\n\n<p>However, looking more positively, seasonally adjusted manufacturing production increased by 0.9% in the three months ended July compared to the prior three months. Seven of the 10 divisions reported a positive growth rate during the period. <\/p>\n\n\n\n<p>The biggest contribution was made by the basic iron and steel, non-ferrous metal products, metal products and machinery\u00a0division (2.7% and contributing 0.6 of a percentage point).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-1-.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"294\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-1--1024x294.jpg\" alt=\"\" class=\"wp-image-717690\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-1--1024x294.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-1--300x86.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-1--768x221.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-1-.jpg 1075w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Source: Stats SA<\/figcaption><\/figure><\/div>\n\n\n<p>Seasonally adjusted manufacturing sales also increased by 1.2% month-on-month. This followed month-on-month changes of -2.7% in May and -0.4% in June. <\/p>\n\n\n\n<p>Nevertheless, seasonally adjusted manufacturing sales decreased by 1.4% in the three months ended  July 2023 compared to the three prior months. <\/p>\n\n\n\n<p>The biggest contributor to the decline was the petroleum, chemical products, rubber and plastic products\u00a0division (-9.1% and contributing -1.9 percentage points).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-22.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"297\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-22-1024x297.jpg\" alt=\"\" class=\"wp-image-717694\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-22-1024x297.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-22-300x87.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-22-768x223.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/09\/stats-sa-22.jpg 1069w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/717482\/social-unrest-warning-for-south-africa-as-budget-cuts-loom\/\" target=\"_blank\" rel=\"noreferrer noopener\">Social unrest warning for South Africa as budget cuts loom<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of South Africa&#8217;s most important sectors has performed worse than anticipated. <\/p>\n","protected":false},"author":95,"featured_media":715102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[14829,26,1799,1809],"class_list":["post-717662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-ber","tag-headline","tag-nedbank","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/717662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=717662"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/717662\/revisions"}],"predecessor-version":[{"id":717750,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/717662\/revisions\/717750"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/715102"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=717662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=717662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=717662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}