Manufacturing production in South Africa edged up 0.1 percent year-on-year in September of 2018, slowing sharply from an upwardly revised 1.5 percent gain in August and well below market consensus of a 1.7 percent increase. It is the lowest annual gain in industrial output since a 1.8 percent drop in March as production slowed for food and beverages (2.7 percent compared to 3.6 percent in August) and fell for petroleum, chemical, rubber and plastic products (-3.2 percent compared to 0.8 percent); motor vehicles, parts and accessories and other transport equipment (-4.9 percent compared to +1.2 percent); radio, television and communication apparatus and professional equipment (-13 percent compared to -9 percent). On a monthly basis, production fell 1 percent, following a 0.2 percent gain in August. Industrial Production in South Africa averaged 0.95 percent from 1974 until 2018, reaching an all time high of 18.50 percent in May of 1995 and a record low of -23.20 percent in April of 2009.
Industrial Production in South Africa is expected to be 1.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production in South Africa to stand at 1.40 in 12 months time. In the long-term, the South Africa Manufacturing Production is projected to trend around 1.00 percent in 2020, according to our econometric models.