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ECONOMY
Manufacturing growth hits 5-month high
Posted Fri, 18 Nov 2005

South African manufacturing growth rose to a five-month high in September, as the sector started to benefit from a weaker rand and the consumer spending boom.

According to Statistics South Africa, manufacturing production rose by 5.9 percent year-on-year in September to 122.8 index points, compared to a rise of 4.0 percent to 118.3 index points in August.

The manufacturing, or factory sector, accounts for 16.4 percent of the economy and is the second-largest contributor to gross domestic product. The increase therefore holds out the promise of strong third quarter economic growth, according to Business Day.

Although the weaker rand was the main reason for the growth in manufacturing production, lower interest rates have also boosted consumer spending. The growth also shows that manufacturers have adapted to the relative strength of the rand, which was previously blamed for suppressing growth, the daily reported.

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