Manufacturing production declined 4% in March, and was also lower than a year ago. Manufacturing data have been volatile in recent months with load shedding (January and February) and Easter holidays (March) impacting on production. However, the end result was that manufacturing production fell in the 1st quarter compared to 4Q07 and is not expected to make much of a contribution to 1st quarter GDP. The slowdown in the cyclically sensitive durable or discretionary spending is confirmed by the March numbers. The only sectors still positive compared to a year ago are the food, textiles and petroleum sectors, i.e. the less sensitive nondurable sectors. However, production in these sectors was also negative in March. With high interest rates and inflation putting increasing pressure on consumer demand, conditions in the sector are expected to remain tough and probably deteriorate.