Loading...
See More

Survey: Manufacturers less confident

Aug 16 2012 13:12 I-Net Bridge

Related Articles

Signs of revival in Eastern Cape

Global downturn leaves mark on KZN

Manufacturing output up slightly

Italtile flags earnings spike

Shares fall as stimulus hopes fade

New vehicle sales accelerate

 
Johannesburg - South African manufacturers were less confident of domestic economic and business conditions in the second quarter of this year‚ evidenced by an increase in the number of those reporting poor to fragile business confidence to 43% in the second quarter from 33% the quarter before.

The Manufacturing Circle released its quarterly bulletin on Thursday‚ which showed that business confidence in the manufacturing sector was fragile during the second quarter.

The second quarter's survey was completed by 67 small‚ medium and large businesses as opposed to 49 that participated in the first quarter.

The proportion of surveyed firms considering business conditions to be stable reached 33% in the second quarter‚ down from 45% in the first quarter.

“The industry remains more vulnerable than in the previous quarter‚” Iraj Abedian‚ economist and chief executive of Pan African Investment and Research Services said.

The survey also indicated that the sector was losing jobs momentum. Manufacturing shed 44 000 jobs in the second quarter.

Just over 60% of surveyed firms reported positive changes to their operating profits and cost of capital. The recent interest rate reduction last month could further improve manufacturers' cost of capital‚ according to Abedian.

“Their cost of capital has gone down by 0.5%. That makes a difference‚” Abedian said.

Most surveyed firms' long-term outlook for the next 24 months was for business confidence to likely remain stable.

*Follow Fin24 on Twitter, Facebook and Google+.

 
iraj abedian  |  confidence
NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

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

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

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