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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
MNI (London)
SOUTH AFRICA JUN MANUFACTURING PROD -1.5% M/M (FCST -0.6%); MAY +0.2%r M/M
SOUTH AFRICA JUN MANUFACTURING PROD -3.5% Y/Y (FCST -3.0%); MAY -1.8%r Y/Y
- South African manufacturing saw a sharper contraction than anticipated in the June data, sliding by -3.5% y/y, 0.5pp lower than consensus expectations and a 1.7pp more than seen in May. This remains an improvement on the April data which saw a -7.3% y/y plunge due to the effects of devastating flooding in the Kwa-Zulu Natal region.
- The largest negatively-contributing sectors were motor vehicles (-17.0% y/y), food (-3.8% y/y) and metal products/machinery (-2.9% y/y). These sectors remain severely hampered by supply chain disruptions worsened by the Ukraine war, including higher energy prices and worsening electricity shortages.
- There was no notable reaction in the Rand, with focus remaining on SARB policy into Q3 and the leadership challenges facing Ramaphosa.
- Looking beyond June production data, the SACCI business confidence report for July saw another small improvement coming off the May lows as the business climate stabilises following the April floods. New vehicle sales saw a substantial upswing, which should see improved production going forward.
- Final goods PPI jumped to +16.2% y/y in June (and CPI to +7.4% y/y), which alongside increasing interest rates continue to exert pressure on the outlook for the manufacturing industry.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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