Manufacturing investment growth slows — but third-quarter pick-up expected
Manufacturers are ready to invest as soon as demand increases, says the Manufacturing Circle
Despite weakening production in the manufacturing sector, manufacturing companies continue to invest in plant and equipment, research and development, and human capital, according to the Manufacturing Circle. However, investment growth slowed, the industry group’s investment tracker index for the second quarter showed on Wednesday. It dropped five points to 58, from 63 in the first quarter. A level above 50 indicates an expansion in enterprise investment, while a level below indicates a contraction. Fifty enterprises, with average annual revenue of R2.1bn, participated in the survey. According to Nampak CEO and Manufacturing Circle chairman André de Ruyter, manufacturing has the highest multiplier effect in job creation, adding five to eight indirect jobs for every one direct job created. "Demand is the big driver of investment — manufacturers are ready to invest if demand grows," he said on Wednesday. "It is vital for industry and government to collaborate to unlock the economy to ...
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