Metals and engineering sector production dips significantly

In a development described by the Steel and Engineering Industries Federation of Southern Africa as “very disappointing”, production in the metals and engineering sector decelerated to -7.7% in April on a year-on-year basis, and by -11.8% compared to March this year.

Seifsa economist Marique Kruger attributed the decline to poor performance in the majority of sub-sectors which recorded negative output levels.

“Notwithstanding the general improvement in business and consumer confidence in recent months, producers have found it very difficult to take advantage of existing buoyancy, as evidenced by the contraction in the real gross domestic product during the first quarter of 2018,” she said.

Kruger noted that this was indicative of continuous lack of demand for final and intermediate manufactured goods, impacting negatively on production within the sector.

More News