Manufacturing production in South Africa in June rose 0.9% year-on-year after a revised 1.0% (0.6%) growth in May, data released by stats SA on Thursday showed.

Stats SA said the 0.9% increase was driven mainly by higher production in the motor vehicles, parts and accessories and other transport equipment division, with 15.8% and contributing 1.6 percentage points; and the basic iron and steel, non-ferrous metal products, metal products and machinery division, with 2.4% and contributing 0.5 of a percentage point.

However, these increases were partially counteracted by decreases reported in the petroleum, chemical products, rubber and plastic products division, with -1.9% and contributing -0.5 of a percentage point; and the food and beverages division, with -2.6% and contributing -0.5 of a percentage point.

Seasonally adjusted manufacturing production for the second quarter decreased by 2.0% compared with the first quarter. Seven of the ten manufacturing divisions reported negative growth rates over the period.

The decrease was mainly due to lower production in the motor vehicles, parts and accessories and other transport equipment; the wood and wood products, paper, publishing and printing division; the food and beverages division; and the petroleum, chemical products, rubber and plastic products division.

Manufacturing production for the second quarter of 2011 reflected an increase of 0.7% compared with the second quarter of 2010. Six of the ten manufacturing divisions reported positive growth rates over this period.

The 0.7% increase was mainly due to higher production in the basic iron and steel, non-ferrous metal products, metal products and machinery division; the motor vehicles, parts and accessories and other transport equipment division; and the petroleum, chemical products, rubber and plastic products division.

Seasonally adjusted sales of manufactured products at current prices in the second quarter increased by 0.3% or R1.1 billion compared with the first quarter. Four of the ten manufacturing divisions reported positive growth rates over the period.