Slow Rebound For Manufacturing

Manufacturing production in South Africa rose by 8.7% y-o-y in April, following a 6.6% increase in March. Although this appears strong at first glance, we caution that the numbers are inflated by base effects from H109, in which the manufacturing sector contracted sharply. Furthermore, business confidence levels in the sector remain relatively low, as measured by the quarterly business confidence index compiled by the Bureau for Economic Research and Rand Merchant Bank. The Q210 survey showed a level of 27, significantly below the neutral level of 50.

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