The median estimate in a Bloomberg survey of 12 economists was for a gain of 5.7 percent. Output fell a seasonally adjusted 3.6 percent in the month.
"The slump in manufacturing production growth is negative for the gross domestic product growth outlook," Standard Bank Group Ltd economist Nomvuyo Guma, told Bloomberg in emailed comments, adding that the manufacturing sector is clearly under pressure, and the unfavorable external environment means it will likely stay that way for some time.
The worsening debt crisis in Europe, which buys about a third of South Africa's manufactured goods, has sapped demand for exports. That may persuade Reserve Bank Governor Gill Marcus to keep its benchmark interest rate unchanged at a 30-year low of 5.5 percent even as price pressures increase. Manufacturing, which accounts for about 15 percent of economic output, contracted for a second consecutive quarter in the three months through September, restricting the economy's expansion to an annualised 1.4 percent. Inflation accelerated to 6 percent in October.
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