SEIFSA Remains Confident Of Its Metals And Engineering Sector Growth Forecast For The Year
JOHANNESBURG, 14 MARCH 2017 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) today expressed confidence that its forecast of a 1,4% growth in the metals and engineering sector for the year remains realistic.
SEIFSA Senior Economist Tafadzwa Chibanguza said the data released by Statistics South Africa (StatsSA) today – which confirmed a 0,4% year-on-year expansion in the sector in January 2017 and a 1% contraction between December 2016 and January 2017 – show that although 2017 is a turning point, nevertheless there were still potential downside risks. The December 2016-January 2017 contraction was an affirmation of that risk.
Mr Chibanguza said that the most severe contraction on a year-on-year comparison was experienced in other transport (-21%), structural metal products (-14%), electrical machinery (-6%), motor vehicle trailers and semi-trailers (-6%) as well as plastic products (-5.3%).
General purpose machinery recorded the most impressive year-on-year growth rate at 13.7%, followed by basic iron and steel products at 9.8%
“The data set released by Statistics South Africa today marks the first data set that we can compare against our simulated model for 2017. Directionally, our simulation for 2017 is 76% in line with the data released today,” said Mr Chibanguza.
He said that although it was still too early in the year to draw concrete conclusions, SEIFSA remained confident that 2017 will be a turning point for the metals and engineering sector, with the forecast 1.4% growth likely to be realized.