Manufacturing sector concerned about its future
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 released on Tuesday 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 m...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.