Manufacturing sector not out of the woods yet – Dr Andre Mellet
The South African Economy showed negative growth in the final quarter of 2016. This negative growth can be contributed to the decline in two sectors, namely: mining and manufacturing. During an interview with RSG, well-known economist, Dr Andre Mellet from the North-West University’s (NWU’s) Vaal Triangle Campus, commented on the negative growth figures for the final quarter of 2016.
Here is what he had to say:
Although the manufacturing figures – as released earlier in the week – showed a growth of 0,8 percent, it is important to note that in terms of a three month (seasonally adjusted and annualised) cycle spanning November, December and January, a decline of -0,4 percent is evident. This had a significant impact on South Africa’s growth figures. A fall in mining production in the final quarter of 2016 further contributed to the negative growth trajectory.
Sectors that contributed to the slight betterment of the growth rate (0,8 percent) – as announced in January 2017 – include: iron and steel (3,5 percent), petroleum and chemicals (1,7 percent) and furniture (21,1 percent). Again, when comparing the different market sectors on a seasonally adjusted and annualised cycle, the following sectors had a negative impact: petroleum and chemicals (-1,3 percent), motoring and production (-3,4 percent), food (-0,6 percent) and wood and paper (-1,2 percent).
Prof Andre Mellet.