* Growth exceeds analysts expectations
* Data points to rising domestic demand
* Rand firmer after data release
(Adds details, comment, reaction)
JOHANNESBURG, April 11 (Reuters) – Growth in South Africa’s
manufacturing output outpaced expectations in February, adding
to signs that domestic demand is recovering and backing the case
for higher interest rates.
Factory output grew by 4.1 percent year-on-year in volume
terms in February from a revised 2.3 percent in January,
Statistics South Africa said on Wednesday. Economists in a
Reuters survey expected growth of 2.0 percent.
On a month-on-month basis, production in volume terms grew
by a seasonally adjusted 2.8 percent. It expanded 1.6 percent in
the three months to February compared with the previous three
months.
The manufacturing sector contributes about 15 percent of
gross domestic product and is a major creator of jobs for the
largely unskilled labour force in the country where unemployment
has languished for years at around 20 to 25 percent.
“It’s a really good number, especially since the
manufacturing numbers have had trouble building up steam,”
Efficient Group economist Merina Willemse said.
“It shows a promising growth in this industry, supporting
perhaps a more optimistic economic figure.”
Continued…
