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Use of production capacity decreases - Stats SA

Cape Town - In 2015 the utilisation of production capacity decreased by 0.5 of a percentage point from 81.1% in 2014 to 80.6%, Statistics SA announced on Thursday.

It is mainly due to an increase in insufficient demand, according to Stats SA.

It said the most noteworthy decreases in 2015 compared with 2014 were recorded in radio, television and communication apparatus and professional equipment (-3 percentage points); furniture and "other" manufacturing (-2.5 percentage points); and basic iron and steel, non-ferrous metal products, metal products and machinery (-1.8 percentage points).

The highest rates of utilisation of production capacity for 2015 were reported in motor vehicles, parts and accessories and other transport equipment (82.9%); food and beverages (82.8%); and radio, television and communication apparatus and professional equipment (82.6%).

READ: Manufacturing business activity lowest in 8 years

The utilisation of production capacity by large manufacturers was 81.8% in November 2015 compared with 82.7% in November 2014.

The increase in under-utilisation of 0.9 of a percentage point between November 2014 and November 2015 can mainly be attributed to an increase in insufficient demand, according to Statistics SA.

Seven of the ten manufacturing divisions showed decreases in utilisation of production capacity in November 2015 compared to November 2014.

The largest decreases were recorded in radio, television and communication apparatus and professional equipment (-4.3 percentage points); basic iron and steel, non-ferrous metal products, metal products and machinery (-2.5 percentage points); textiles, clothing, leather and footwear (-1.7 percentage points and furniture and "other" manufacturing (-1.7 percentage points).

The highest rates of utilisation of production capacity for November 2015 were reported in glass and non-metallic mineral products (85.2%); motor vehicles, parts and accessories and other transport equipment (84.2%); petroleum, chemical products, rubber and plastic products (83.5%); food and beverages (83.4%); and radio, television and communication apparatus and professional equipment (83%).

ALSO READ: Manufacturing sector 'at a crossroads'

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