Statistics South Africa will release the April manufacturing production and sales figures on the 10 June.
"We have penciled in a 6.9% y/y rise in manufacturing during the month.
"However it is important to note that the increase comes off a relatively low base in April 2009," said Standard Bank Group economist Danelee van Dyk.
But latest movements in the Kagiso Purchasing Managers' Index (PMI), which measures the level of activity in the manufacturing sector, were worrying for the unit.
The PMI slipped further in May to 51.1 from 55.2 in April, which marked its seventh monthly decline.
The fact that the index remains above the 50-mark reading is important, as any reading below 50 indicates a contraction in production.
The Economics unit forecasted that there could've been a negative contraction in manufacturing on a month-on-month (m/m) basis, given the movements in the PMI.
"In line with the consecutive declines in the PMI, manufacturing production is expected to have declined by 2.5% m/m seasonally adjusted in April from an increase of 2.6% m/m seasonally adjusted in March," said bank economist Shireen Darmalingam.
Manufacturing production for March 2010 increased by 6.3% compared with March 2009 from a 2.7% year-on-year (y/y) increase in February.
The 6.3% increase in March 2010 compared with March 2009 was due to higher production in the motor vehicles, parts and accessories and other transport equipment division (contributing 2.2 percentage points) and the basic iron and steel, non-ferrous metal products, metal products and machinery division (1.9 percentage points) among other divisions.
Questions were raised over the sustainability of growth in the sector.
"We caution however, that the current strong recovery in the industry may not be sustained," said van Dyk.
"Even though there are encouraging signs of economic activity, internal demand remains sluggish, and with the global inventory cycle reaching maturity, there are no significant forces that will provide impetus to the sector," she added.
