Supply chain constraints dampen manufacturing confidence

SUPPLY chain constraints as a result of global restrictions imposed to curb the spread of Covid-19 have left South Africa’s manufacturing sector reeling.

The first-quarter Absa Manufacturing Survey released yesterday showed that manufacturing business confidence plunged to 25 index points in the first quarter after two consecutive increases brought sentiment to 31 points in the fourth quarter last year.

Absa said only a quarter of respondents were satisfied with prevailing business conditions.

The quarterly survey, which covers about 700 businesses in the manufacturing sector, was conducted by the Bureau for Economic Research between January and March 1 this year.

Absa said manufacturers highlighted raw material shortages as a serious impediment to activities for the second quarter in a row.