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Johannesburg - In September the Eastern Cape Barometer continued climbing, up a solid 12.4% year on year, reflecting the province’s highest growth since February 2006.
The province could expect a decline if it failed to broaden its focus to more than motor manufacturing, said economists.co.za economist Mike Schüssler, the compiler of the BoE Private Clients and Sake24 Eastern Cape Barometer.
The Eastern Cape had too great a dependency on the motor industry, he said. It was time for it to look to other industries, such as transport and support services.
In his view the Eastern Cape was also spending too much of the state’s resources on infrastructure for the motor manufacturing industry.
In September motor manufacturing showed year-on-year growth – despite an industry strike.
But other industries were worse off.
Glassware production fell 10.9% year on year in September, followed by furniture with 8.6% and televisions with 2.9%.
Overall manufacturing lost some momentum in September, with year-on-year growth of 9.7%, compared with 12.8% in August and a high of 15.4% in July.
The decline in September’s growth figure for manufacturing was reflected in vehicle sales.
Following annual vehicle sales growth of 41.4% in July and 53.8% in August, the figure suddenly dropped to 9.1% in September.
In addition, agriculture had declined drastically during the year. In September the agricultural index fell 7.1% year on year, its biggest contraction since June 2007.
Annual growth in the Eastern Cape agricultural sector has been in the red since December 2009, owing to an extended drought and a fall-off in global prices for agricultural products from the region.
In certain instances this decline has been so bad that farmer's associations have even purchased certain products for sale at a later date.
In October Sake24 reported that Mohair South Africa had imposed a minimum price on adult mohair which was 45% above the current R70.85/kg.
A mohair producers’ association was buying the mohair and selling it as soon as the market price moved above break-even point.
In August South Africa stopped exporting mohair to China after local farmers were unable to provide guarantees that the mohair had not been tainted by Rift Valley Fever.
- Sake24
For business news in Afrikaans, go to Sake24.com.
The province could expect a decline if it failed to broaden its focus to more than motor manufacturing, said economists.co.za economist Mike Schüssler, the compiler of the BoE Private Clients and Sake24 Eastern Cape Barometer.
The Eastern Cape had too great a dependency on the motor industry, he said. It was time for it to look to other industries, such as transport and support services.
In his view the Eastern Cape was also spending too much of the state’s resources on infrastructure for the motor manufacturing industry.
In September motor manufacturing showed year-on-year growth – despite an industry strike.
But other industries were worse off.
Glassware production fell 10.9% year on year in September, followed by furniture with 8.6% and televisions with 2.9%.
Overall manufacturing lost some momentum in September, with year-on-year growth of 9.7%, compared with 12.8% in August and a high of 15.4% in July.
The decline in September’s growth figure for manufacturing was reflected in vehicle sales.
Following annual vehicle sales growth of 41.4% in July and 53.8% in August, the figure suddenly dropped to 9.1% in September.
In addition, agriculture had declined drastically during the year. In September the agricultural index fell 7.1% year on year, its biggest contraction since June 2007.
Annual growth in the Eastern Cape agricultural sector has been in the red since December 2009, owing to an extended drought and a fall-off in global prices for agricultural products from the region.
In certain instances this decline has been so bad that farmer's associations have even purchased certain products for sale at a later date.
In October Sake24 reported that Mohair South Africa had imposed a minimum price on adult mohair which was 45% above the current R70.85/kg.
A mohair producers’ association was buying the mohair and selling it as soon as the market price moved above break-even point.
In August South Africa stopped exporting mohair to China after local farmers were unable to provide guarantees that the mohair had not been tainted by Rift Valley Fever.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
