Persistent currency strength has had a detrimental impact on export-based activities in the manufacturing sector, making similar imported goods more competitive.

Manufacturing will be under pressure because of currency strength. It will hold the sector back and (keep) growth from reaching its potential level.

Manufacturing is not the only supply sector battling a strong currency. Mining is being crippled by a similar problem.

We saw a lot of strength in the manufacturing sector in the NAPM report. That's why you saw bond yields rise today.

This is going to cement the case to hike interest rates. The numbers do nothing to alter the stance now developing in the market that the next move in interest rates will be up. The consumption side of the economy needs to be slowed.

Another issue likely to resurface is the matter of 'a more competitive exchange rate', deciphered as code for the rand to weaken. Moral suasion such as this may be good for export-biased manufacturers, but will hardly be considered good for observers of inflation, or long-term interest rate markets.