Leather shares in South African manufacturing upturn
According to an annual report by the South African Trade and Industry department, the steady decline in employment in the country’s manufacturing sector may soon be reversed.
The Government has prioritised tackling unemployment in the sector, which is estimated at about 40%.
The report states that since the end of 1996, manufacturing employment has declined consistently. At the end of 2002 however manufacturing output increased 0.6%, with the leather, textiles, clothing, food and beverages sectors achieving the most significant growth.
The report was written in April 2003 and predicted that employment would grow 0.4% in 2003, rising to 1.4% in 2004. Manufacturing production had been expected to increase 3.1% in 2003 and 5.6% in 2004. Exports were meanwhile expected to go up 2.3% in 2003 and 7.7% in 2004.
The continued depreciation of world currencies, combined with a weaker than anticipated global economy meant that the predictions were later downgraded. Manufacturing volumes are now expected to increase 3% in 2003 and export growth and employment are also likely to be weaker. It is anticipated that manufacturing fixed investment will remain strong.
