ANC Statements

The ANC welcomes the latest Manufacturing Production and Sales Data for July 2023. The volume of manufacturing production increased by +2.3% in July 2023 compared to July 2022. The most significant contributions were made by chemical products, rubber and plastic products (+6.8% and contributing +1.4 percentage points to overall growth); Motor vehicles, parts and accessories and other transport equipment (+9.5% and +1.0 percentage points to overall growth).

Seasonally adjusted manufacturing production increased by +0.9% in the three months ended July 2023 compared with the previous three months. Seven of the ten manufacturing divisions reported favourable growth rates over this period. The most significant contribution was made by the basic iron and steel, non-ferrous metal products, metal products and machinery division (+2.7% and +0.6 a percentage point to overall growth).

Manufacturing Sales

Manufacturing sales at current prices increased by +9.2% in July 2023 compared to July 2022. Seasonally adjusted month-on-month manufacturing sales between June and July rose by +1.2%, reversing a negative trend in recent months.

What does this mean for South Africans?

Increasing Manufacturing Production and Sales figures will feed into increased economic growth and job creation. Manufacturing is crucial to the country’s economy due to its linkages with upstream and downstream economic activity. When more goods are manufactured, labour utilisation and employment opportunities increase. Services sectors are also stimulated by increased manufacturing growth, providing value-adding activities for industries such as Transport and Finance.

The ANC remains optimistic about ongoing economic reforms. Including those to stabilise the electricity supply and rail and ports systems, as well as those aimed at unlocking increased levels of investment, are beginning to progressively move the economy onto a new, increased growth trajectory.

The latest manufacturing data should be read together with the recent positive developments in employment statistics, which saw the official unemployment rate decrease by 0.3% in the second quarter of 2023, as 153,914 jobs were added to the economy. Most of these new jobs, over 103,000, were in South Africa’s construction sector and were primarily linked to accelerated investments in new electricity infrastructure.

The ANC continues to mandate the government to take bold steps to improve the lives of ordinary South Africans by putting in place inclusive economic policies aimed at accelerating economic growth and employment creation for all our people, both in urban and rural areas.