S. African manufacturing capacity usage down in August from May levels

According to the latest data released by Statistics South Africa, the utilization of production capacity by large manufacturers in South Africa decreased to 79.8 percent in August from 81.1 percent in May this year, though it indicated a slight rise from the 79.6 percent level recorded in August 2010.
 
According to the August report, the decrease in manufacturers' capacity utilization is based on downtime due to maintenance and lower productivity, with seasonal factors also playing a role.
 
The capacity utilization rate of the South African manufacturing sector before the global recession from the end of 2008 was 86 percent. It dipped to below 78 percent in 2009. before starting to pick up gradually in 2010. The growth trend has declined in 2011, which has prompted moves by the South African government to enforce local procurement of up to 75 percent from domestic producers.
 
In August this year, the biggest decreases were reported in the furniture manufacturing division. the petroleum, chemical products, rubber and plastic products division and the basic iron and steel, nonferrous metal products, metal products and machinery division.