Advertise with fastmoving.co.za
 
 

For the first time in 11 months, the subindex tracking expected business conditions in six months’ time dropped to below 50.
For the first time in 11 months, the subindex tracking expected business conditions in six months’ time dropped to below 50.

Manufacturing sector concerned about its future

ECONOMIC NEWS

By Sunita Menon - Aug 3rd 2018, 14:20

For the first time in 11 months, the subindex tracking expected business conditions in six months’ time dropped to below 50. 

As the manufacturing sector bleeds jobs, factory owners are worried about its future. This comes as employment statistics show that the sector lost 55,000 jobs year on year in the second quarter.

The seasonally adjusted Absa purchasing managers index (PMI) rose to 51.5 index points in July, up from 47.9 in June.

However, the PMI pointed to a grim view for the rest of 2018. For the first time in 11 months, the subindex tracking expected business conditions in six months’ time dropped to below 50.

Unresolved trade disputes between the US and its major trading partners continued domestic political uncertainty, higher fuel prices and the intermittent return of power interruptions would weigh on business conditions in the manufacturing sector in coming months, said NKC analyst Gerrit van Rooyen.

"The manufacturing industry reversed all its job gains from the previous two quarters, in line with deteriorating business conditions in the industry," Van Rooyen said.

The manufacturing sector was extremely responsive to changes in the global and local environments, the Manufacturing Circle executive director Philippa Rodseth said. She added that the sector still had a long way to go to see a turnaround.

Business Live 

Read more about: trade | sa economy | pmi | manufacturing | business

Related News

Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.

Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.

SA expected to sow fewer maize hectares than in previous seasons
26/11/2019 - 10:06
South African farmers are expected to sow 2.8% fewer hectares of the food staple maize next season than forecast in October after the planting season was delayed by rains, a Reuters survey of analysts showed.

Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.

Gearing FMCG manufacturing for the red season spike and maximising profits all year round
25/11/2019 - 11:03
As we enter the festive season, demand for Fast-Moving Consumer Goods (FMCG) increases rapidly, often leaving manufacturers scrambling to fulfill orders from their distribution channel. If demand cannot be met, then loss of revenue is inevitable. However, over-production is not an ideal solution either, as it can leave manufacturers sitting with unsold stock that costs money to store.