Economic data released during the first quarter of the year show alarming trends in the metals and engineering sector, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) said on Tuesday.
The data also confirmed the organisation’s forecasts from earlier this year that the metals and engineering sector would not expand, owing to weak demand, power shortages and further industrial action, besides other challenges.
Data confirms Seifsa’s fears over contraction of metals sector “Statistics South Africa’s (Stats SA’s) quarterly employment statistics for the fourth quarter of 2014 provide a good idea of the damage done by the industrial unrest and electricity shortages during the second half of 2014,” Seifsa chief economist Henk Langenhoven said.
“All four recently published datasets contain alarming trends, and the potential impact on employment and company survival, now and into the future, is very disturbing.
Based on these numbers, we are of the view that the metals and engineering sector will most likely impact negatively on general economic growth,” Langenhoven stated.
