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Johannesburg - In October the Eastern Cape economy performed poorly in the agricultural and manufacturing sectors.
This weak showing by the province's key industries resulted in the Sake24 and BoE Private Clients' October Eastern Cape Barometer falling a substantial 6.7%, compared with October last year.
But economist Mike Schüssler, who compiled the index, said that he expected the manufacturing sector to recover in November.
The Eastern Cape was under some pressure, but the manufacturing sector would do better in the following month, he said.
According to Schüssler, the South African economy experienced a setback in October and the Eastern Cape's performance was not too bad when compared with other provinces.
The agricultural industry in the Eastern Cape has experienced hard times over the past year. Since December 2009 the industry has contracted year-on-year (y/y), with October showing the biggest drop of 7.2%.
Schüssler reckoned that this long contraction was a consequence of the drought that recently plagued the province.
The manufacturing industry has not yet really begun to shrink, but was showing a particularly erratic growth trend.
In October the industry grew 4.6% y/y, much less than the recent high of 15.4% in June and even September’s 9.7%.
In October manufacturing was down quarter on quarter which, said Schüssler, reflected the impact of strikes in the motor industry.
The recent strikes, together with a strike at the ports, prevented the delivery of sufficient components for factories to manufacture goods.
Schüssler again stressed that the Eastern Cape was putting excessive dependence on the motor manufacturing industry to keep its economy going.
Although the construction and transport industry produced healthy growth in October, the figures mask the full extent of the changes in economic activity in these sectors.
- 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
This weak showing by the province's key industries resulted in the Sake24 and BoE Private Clients' October Eastern Cape Barometer falling a substantial 6.7%, compared with October last year.
But economist Mike Schüssler, who compiled the index, said that he expected the manufacturing sector to recover in November.
The Eastern Cape was under some pressure, but the manufacturing sector would do better in the following month, he said.
According to Schüssler, the South African economy experienced a setback in October and the Eastern Cape's performance was not too bad when compared with other provinces.
The agricultural industry in the Eastern Cape has experienced hard times over the past year. Since December 2009 the industry has contracted year-on-year (y/y), with October showing the biggest drop of 7.2%.
Schüssler reckoned that this long contraction was a consequence of the drought that recently plagued the province.
The manufacturing industry has not yet really begun to shrink, but was showing a particularly erratic growth trend.
In October the industry grew 4.6% y/y, much less than the recent high of 15.4% in June and even September’s 9.7%.
In October manufacturing was down quarter on quarter which, said Schüssler, reflected the impact of strikes in the motor industry.
The recent strikes, together with a strike at the ports, prevented the delivery of sufficient components for factories to manufacture goods.
Schüssler again stressed that the Eastern Cape was putting excessive dependence on the motor manufacturing industry to keep its economy going.
Although the construction and transport industry produced healthy growth in October, the figures mask the full extent of the changes in economic activity in these sectors.
- 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
