Manufacturing business confidence to remain subdued – BER
Manufacturing business confidence fell sharply to 18 points in the first quarter of this year – a level last seen during the 2008/9 economic recession – after remaining unchanged at 34 index points in the last quarter of 2015.
This was according to a survey conducted by the Bureau for Economic Research (BER) between January and March.
The BER noted that more than eight out of ten manufacturers were currently unsatisfied with prevailing business conditions, with soft domestic demand a key factor weighing on confidence.
Domestic sales and order volumes for the quarter under review declined compared with the same period last year; However, manufacturers were able to push for higher domestic selling prices.
On top of lower domestic demand, the export sales volume indicator declined for a second straight quarter.
Faced with persistent weak demand, the production volume indicator declined further during the first quarter of this year, which resulted in lower employment.
Most of the headwinds faced by the sector were unlikely to reverse in the short term, which suggested that manufacturing business confidence could remain subdued over the near term.
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