Albeit modest, metals sector poised for second consecutive year of growth

Albeit modest, metals sector poised for second consecutive year of growth
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South Africa’s metals and engineering sector is poised for a second consecutive year of modest growth, with the Steel and Engineering Federation of Southern Africa (Seifsa) forecasting a 1.1% expansion for 2018. The sector grew by 2.7% in 2017, breaking a streak of three consecutive years of contraction. However, the recovery was unlikely to signal an end to output volatility, which had become a hallmark of the industry since the global economic crisis of 2008. In addition, Seifsa chief economist Dr Michael Ade warned that industry was still in the throes of fundamental structural change, characterised by declining investment, output and employment, as well as low capacity utilisation levels.



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