TRACKER UPDATE
Sluggish demand weighs on industrial investment
Manufacturing Circle’s third-quarter investment tracker reflects a decline in investment in the sector
Local manufacturers are showing resilience, but the Manufacturing Circle’s third-quarter investment tracker released on Wednesday reflects a decline in investment in the sector. The tracker fell five index points to 60, indicating contraction in investment, specifically in plant and equipment, and salaries and wages. Respondents said this reflected sluggish domestic and global demand, which would improve only marginally in the fourth quarter. The index tracks spending in property, plant and equipment, inventory, human capital and research and development. Investment in new plant and equipment fell 22 index points. Most firms providing input to the index operated in Gauteng (46%), KwaZulu-Natal (22%) and the Western Cape (16%). Respondents employed nearly 87,000 people and had average yearly revenue of R1.8bn and median revenue of R95m. "Although [the index] reflects a downward trend, from 70 points in [the third quarter of 2016], results were consistently above the neutral 50-point ...
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