By Alois Vinga
THE manufacturing sector’s capacity utilization went down by 3,2% in the first quarter of 2023 on the back of incessant power cuts among other factors, Zimbabwe National Statistics Agency (ZIMSTAT) reported Thursday.
The data shows that there was significant reversal of gains recorded in the previous quarter.
“First quarter 2023 capacity utilization for large manufacturing companies was 51.1 %, a decline from the fourth quarter value of 57.9 %. For small and medium companies in the sector, capacity utilization for the first quarter 2023 was 44,5% from 48,8%, recorded in the fourth quarter.
“Combined first quarter 2023 capacity utilization for the manufacturing sector was 45,6% from 48,8%,recorded in the fourth quarter,” the report said.
The three major constraints to production cited by respondents in both manufacturing and mining sectors were: shortage of power, cash flow challenges and uncertainty towards the economic environment.
About 44 % of respondents in the manufacturing sector viewed production levels over the first quarter of 2023 as having remained unchanged, 17,6% were of the opinion that the levels had increased.
A total 20% of the respondents in the manufacturing sector showed more optimism towards the general business climate for second quarter 2023.
Excluding seasonal variations, 65,9% of respondents in the manufacturing sector reported their firms’ total employment as having remained unchanged during the first quarter 2023
All manufacturing sub-sectors had more than 50% of the respondents anticipating the employment level to remain the same in the second quarter 2023.
With reference to the level of local order books during first quarter 2023, half of the respondents in the manufacturing sector had the sentiment that they were normal for the season.
“Sentiments towards stocks of finished products with regards to first quarter 2023, were that less than 10 percent of respondents in the manufacturing (6.1%).
“The proportion of respondents who viewed their first quarter 2023 stocks of raw materials as being normal for the season was 47.3% for manufacturing,” the report said.
In terms of supplier delivery time, 13,7% of the manufacturing sector’s respondents and 14,9%
The Manufacturing Confidence Index went up from 2,9 in fourth quarter 2022 to 7,3 in first quarter 2023.
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