Growth in South Africa's manufacturing output quickened in the year to August, official data showed yesterday, suggesting that a weaker rand currency was helping the key sector to recover.

Manufacturing rose by an unadjusted annual rate of 3,5% in volume terms during August compared to an upwardly revised 2,6% in July, Statistics South Africa said.

On a monthly basis, output rose by an unadjusted 0,4% - similar to the July increase.

"There is some recovery taking place ... the weaker rand and strong domestic demand is probably helping the recovery," said Nedbank economist Magan Mistry.

But he said the figures probably meant little for the outlook on interest rates, which the South African Reserve Bank (SARB) is considering at a two-day policy meeting starting on Wednesday.

Manufacturing is the second-biggest sector of Africa's biggest economy, accounting for more than 16% of gross domestic product. It has rebounded from a 1,9% contraction in the first quarter of 2005, blamed largely on sustained strength in the rand after a three-year rally.

But the domestic currency has depreciated by about 14% so far this year, offering some relief to exporters who have seen their profits recede.

During the three months to the end of August, manufacturing output rose by 1,2% compared to the previous quarter, spurred by growth in demand for motor vehicles and their components along with chemical products and furniture.

There was no market reaction to the data, which lags most other key releases from Statistics South Africa.