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Manufacturing sector conditions will remain downbeat

The New Age reports that the third quarter 2012 Manufacturing Circle survey released this week says business conditions in the South African manufacturing sector are expected to remain fragile in the short to medium term.
Reasons for the pessimistic outlook on business conditions, the survey says, include prolonged wildcat strikes, declining mine investments, the proposed electricity hikes and unfavourable labour conditions due to above-inflation wage demands. Despite an increase of 49000 jobs in the manufacturing sector, the manufacturing labour market remains under stress.

According to The New Age, the study reveals that both domestic and global demand conditions remained downbeat during the third quarter. "Many respondents reported that production within manufacturing was negatively affected by spill over effects from strikes." Another factor contributing to the sector's decline is the lack of skills and technology, the study concludes.

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Posted on 22 Nov 2012 12:01