Manufacturing confidence still constrained by loadshedding

Confidence levels in the manufacturing sector remain near the low levels reached during previous business cycles, as loadshedding weighs on sentiment, financial services firm Absa's Manufacturing survey for the second quarter shows. “Electricity supply disruptions not only directly weigh on production and capacity and hurt profitability owing to the costs associated with loadshedding mitigation measures such as diesel generators, but also negatively impact sentiment,” says Absa Relationship Banking manufacturing sector head Justin Schmidt.