This was less than Bloomberg economists' predictions, whose consensus was 2.8% growth, but matched Investec's forecast.
The boost came from food and beverages, which grew 10.1%, contributing 2.5 percentage points to the total; basic iron and steel, nonferrous metal products, metal products and machinery, which grew 4.3%, contributing 0.8 of a percentage point; and motor vehicles, parts and accessories and other transport equipment, which grew 5.5%, contributing 0.3 of a percentage point, Stats SA reported on Tuesday.
Investec economist Laura Hodes said: "Production was supported by the continued pick-up in global economic activity and trade, which is aiding export-orientated local manufacturers.
"Moreover, advance indications provided by the manufacturing purchasing managers indices have also suggested a strengthening in domestic demand."
FNB economist Mamello Matikinca expected a mild recovery for the sector in 2018 as domestic demand gradually increased.
Seasonally adjusted manufacturing production decreased 1.6% in January compared with December. This followed month-on-month increases of 1.1% in December and 1.2% in November.
Seasonally adjusted manufacturing production increased 1.8% in the three months ended January compared with the previous three months, with eight of the 10 manufacturing divisions reporting positive growth rates over this period.
The Absa purchasing managers index (PMI) rose to its best reading in nine months in January as business activity recovered and new sales orders increased. The index, which gauges manufacturing activity, rose to 49.9 in January from 44.9 in December.
Source: BDpro
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
