Manufacturing production growth fell moderately in September and production in the 3rd quarter was about 2.5% lower than in the 2nd quarter. The manufacturing sector, with a weight of 16% in GDP, grew 14.5% during the 2nd quarter and made a sizeable contribution to growth. However, indications are that the sector will detract from GDP in the 3rd quarter. The BER/Investec Purchasing Manager Index deteriorated further in October (to 46.2) and is firmly in recession territory. Local manufacturing is under pressure because a slow down in global and local demand. Globally, the manufacturing sector is in recession. South Africa’s manufacturing sector will not be able to escape and tough times lie ahead for the sector.