Rebound in selling price inflation data is encouraging, says SEIFSA
This article has been supplied.
The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes the latest Producers Price Index (PPI) data, which shows an uptick in selling prices for primarily intermediate goods of the metals and engineering (M&E) sector, Economist Marique Kruger said.
The data, released by Statistics South Africa this morning, shows a rebound in the PPI for intermediate manufactured goods from -1.5 percent in December 2019 to 0.7 percent in January 2020. The increase is consistent with the annual change in the PPI for final manufactured goods, which increased to 4.6 percent in January 2020, from 3.4 percent in December 2019.
Speaking after the release of the data, Ms Kruger said that given the volatile historical trend of the PPI owing to factors affecting supply, the latest manufactured goods data is encouraging.
“Producers prefer stability in the data which enables forward planning in a difficult business climate, underpinned by difficulty in passing on price increases onto the market. Moreover, the volatility in selling prices compels manufacturers to absorb unusual spikes in input and material prices in order to stabilise selling prices and keep loyal clienteles,” she said.
Ms Kruger said that generally, the latest data is good for businesses which are provided with an opportunity to perk-up margins and leverage cost-push inflation, also enabling their sustainability. This, she said, would provide impetus for growth in the M&E sector, as well as the broader manufacturing industry and the economy.
Comments
Projects
Latest Multimedia
Latest News
Showroom
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
