Press Release – 2014/08/08: FEARS BECOME REALITY AS SECOND QUARTER DATA SHOWS CONTRACTION

The first quarter confidence levels (measured by the purchasing managers’ sub-index for business activity) were strongly negative (-5%), and have now been followed by equally disappointing production numbers for the second quarter. Actual production for the sector fell by 5% on the second half of 2014 (seasonally adjusted -2%).

“Having hoped for better growth than the 2% recorded during 2013, these numbers indicate that 2014 production could actually be lower than that of 2013, says Mr Langenhoven, adding that the third quarter started even worse with production in July dramatically lower due to industrial action”.

  • June production was 3% higher than May 2014, due to pre-emptive stock building.
  • On a 12 month basis, growth slowed down to 0,8% (12 months ended in June vs similar period ending in June 2013).
  • June 2014 production was 1% lower than June 2013.
  • The basic ferrous, non-ferrous, other fabricated metal products, electrical machinery and equipment and the household appliance sub industries saw some growth on a 12 month basis.

Production capacity utilisation numbers show similar downward trends, with overall utilisation declining by 0,1% over 12 months.

Other comparisons are;

  • The second quarter 2014 was 1,1% lower than the first quarter,
  • The first half of 2014 was 0,1% lower than the first half of 2013, and
  • The second quarter was nearly 2% lower than the second quarter 2013.

“It is expected that the third quarter of 2014 will not be much better, although the survey capacity utilisation will be done in August, the month immediately after the July strike,” Mr Langenhoven said.
He added that accelerated production may be the result of compensation for losses incurred in July.

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Press Release – 2014/11/11: EFFECTS OF MONTH-LONG STRIKE CONTINUE TO BE FELT IN THE METALS AND ENGINEERING SECTOR

JOHANNESBURG, 11 November 2014 – The damaging impact of the month-long strike in the metals and engineering sector in July continues to be felt, with the sector having experienced a 6,1% decline in seasonally-adjusted, third-quarter production compared to the second of quarter 2014, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today.

Press Release – 2014/11/25: SEIFSA CONCERNED ABOUT CONTINUING SLUGGISH ECONOMIC GROWTH

JOHANNESBURG, 25 NOVEMBER 2014 – Although the South African economy improved by an adjusted 0,5% in the second quarter of the year, its overall performance remains very disappointing, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today.

Commenting on the gross domestic product (GDP) figures released by Statistics South Africa today, SEIFSA Chief Economist Henk Langenhoven said that while the reported second-quarter growth was in line with the latest estimates in Finance Minister Nhlanhla Nene’s Medium-Term Budget Policy Statement, nevertheless it remained well below the potential growth rate of 3,5% “and creates some doubt as to the actual credibility of a 3,5% growth rate for the economy”.

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