• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Manufacturing sector stable

May 18 2012 16:31 Sapa

Related Articles

SA launches drive to boost manufacturing

Uptick in new vehicle sales

SA factory orders still sliding

Eurozone manufacturing downturn deepens

Spain manufacturing decline speeds up

SA manufacturing output falls

 

Johannesburg - Confidence in the manufacturing sector remained stable in the first quarter of the year, the Manufacturing Circle said on Friday.

"Manufacturing production in the first quarter of 2012 grew by 1.9% quarter-on-quarter, compared to 1% in the fourth quarter of 2011," spokesperson Coenraad Bezuidenhout said in a statement.

Respondents to the Manufacturing Circle's quarterly survey were optimistic in the light of government's infrastructure investment drive, but said various risks dampened their confidence.

These risks included a deficiency in water and electricity supply and scarcity of raw materials like good grade coal and steel.

Soaring transport and energy costs, and uncompetitive labour costs coupled with an appreciating rand were also factors.

Respondents were concerned about uncertainty in the global economy and about original equipment manufacturers leaving South Africa due to a lack of confidence in the automotive production and development programme.

During the first quarter, the survey found the value of domestic and international sales had deteriorated.

"Furthermore, the slowdown in the global economy during the rest of the year and the effect of cheap manufactured goods on the local manufacturing sector are expected to stifle manufacturing production," Bezuidenhout said.

Manufacturing jobs were disappointing in the first quarter of the year, with the sector posting the second highest number of job losses in the South African economy.

The rest of the year was expected to be tough.

"A recession in the eurozone, coupled with a possible hard landing in China, will negatively affect the domestic economy, mainly through the trade channel.

"Consequently, the manufacturing value added is predicted to shrink by about 0.7% during 2012."

Bezuidenhout predicted a rebound in 2013 as the global economy recovered, government's infrastructure drive was implemented, and the manufacturing competitiveness enhancement programme kicked in.

"On the other hand, the rand exchange rate will continue to pose downside risks to manufacturing exports going forward," he said.

The survey contains the views of South African CEOs of manufacturing companies with revenues ranging from R300m to over R10bn.

manufacturing sector  |  manufacturing

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

10 most expensive cars In the world

This is car porn at its best!

 
 

Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...