Advertise with

Manufacturers’ sentiment index jumps to 36,61 in third quarter, Namibia
Manufacturers’ sentiment index jumps to 36,61 in third quarter, Namibia

Manufacturers’ sentiment index jumps to 36,61 in third quarter, Namibia

FMCG SUPPLIER NEWS - Oct 23rd 2013, 10:12

The manufacturers’ sentiment index jumped to 36,61 in the third quarter of this year from the -14,89 recorded at the end of the previous quarter, Simonis Storm Securities (SSS) said in a report released earlier this month. 

SSS said the present situation index increased to 22,56 from -35,24 and expectations index also increased from 10,56 to 54,17.

“It appears the tides changed during the third quarter with the outlook from this sector moving from negative to positive,” the report said.

During the third quarter, 48% of the manufacturers experienced an increase in production volumes. Eight percent of manufacturers experienced “above normal” levels in terms of their export order books, down from 17% in the second quarter. Capacity utilisation increased sharply from 69% to 78% .

“Employment levels in this sector remain virtually the same over the next quarter. The number of manufacturers who experienced an increase in their production volumes during the third quarter has increased to 48% from 13% in the second quarter. Furthermore, the number of respondents experiencing decreasing manufacturing volumes decreased from 31% to five percent over the same period. Three percent of respondents recorded above normal order levels, greater than the six percent recorded in the second quarter. 19% of the respondents indicated that orders have decreased and 38% showed that their numbers have stayed the same,” SSS said.

The report said 62% of the respondents indicated that their export level books have remained the same. Eight percent of the respondents (as opposed to 17% in the second quarter) registered above normal export orders. Those reporting a decrease in export order levels moderated to 31% from 33% in the second quarter, the report.

SSS said there has been an increase in those that reported above normal levels of stocks of finished goods with these figures increasing from 13% to 19%. Those that reported below normal stock levels also increased to 24% from 13%.

“Manufacturers’ views of the current business situation appear to be optimistic with 43% of the respondents gauging the situation as good.”

“10% feel that the situation has worsened while 48% feel that the situation has stayed the same. Capacity utilisation amongst manufacturers has improved dramatically from 69% to 78%,” SSS said.

The report said there is a positive outlook for production in terms of volumes with 38% being bullish about the last quarter of 2013. Those who expected volumes to decline represented 19%, much lower than the 31% in the third quarter.

“The number of respondents expecting higher selling prices in the coming quarter decreased from 56% to 52%. Expectancy for a decreased selling price has dropped from six percent in the previous quarter to five percent.

“The outlook for employment for the next quarter indicates that most manufacturers seem content with their current employment levels. 81% of the respondents indicated that employment levels will remain virtually the same. 14% feel that there will be an increase in their workforce while only five percent feel that there will be a decrease in number of people employed,” the report said.

The outlook for general business conditions for the next quarter has improved, with 43% respondents expecting business conditions to revitalise. 14% expect the situation to worsen in the fourth quarter. For the third quarter, 39% of manufacturers’ inputs originate in Namibia and 45% from the rest of SACU.


Related News

Manufacturing production shrinks for second month in July
11/09/2019 - 13:01
Manufacturing production recorded its second consecutive contraction in July, in line with analysts’ expectations.

As cyber threats increase, manufacturers should seek OT-IT convergence
01/08/2019 - 10:55
Cyber threats were traditionally perceived to largely target organisations in the financial services sector or companies whose data could be monetised by cybercriminals. Of late, we have seen that businesses in other industry sectors are becoming increasingly vulnerable to attacks.

Hasbro to start making toys in Vietnam and India as US-China trade war goes on
25/07/2019 - 10:35
Hasbro CFO Deborah Thomas says some retailers briefly paused direct import orders from manufacturing locations in the second quarter as they watched the trade situation.

JIT is key to optimising the FMCG supply chain
23/07/2019 - 19:12
The ability to manufacture ‘just enough’ stock to cover orders and deliver ‘just enough’ product to every retailer is the optimal supply chain scenario in the Fast-Moving Consumer Goods (FMCG) industry. This is known as Just in Time (JIT) manufacturing and delivery.

Clover's R4.7bn deal gets Competition Commission nod
22/07/2019 - 10:12
The Competition Commission has approved, with conditions, the R4.8bn sale of branded foods and beverages group Clover Industries to a consortium led by Tel Aviv-based Central Bottling Company, Clover said on Friday.