Seifsa concerned about manufacturing despite output improvement
12 Jun 2019 - by Staff reporter
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) remains cautious in spite of the 4.6% improvement in South Africa’s manufacturing output in the first quarter.
This after a report by Statistics SA yesterday that indicated a 4.6% year-on-year improvement.
The largest contributions were made by basic iron and steel, motor vehicles, food and beverages and petroleum.
According to Seifsa economist Marique Kruger, there are concerns due to a number of constraints such as the exchange rate, increased input costs, operational costs and high fuel and energy costs.
“These variables, no doubt, dropped the value add by manufacturing to the GDP in quarter one of 2019, and have the ability to further hinder manufacturing contribution in the second quarter of 2019.”