Impact of the global recession

The negative impact of the global recession on South Africa's manufacturing sector was significant. In 2009 the utilisation of production capacity fell from 84% to 78%. The portion of underutilised capacity attributable to insufficient demand rose to 15%. Today, capacity utilisation stands at 81%. Although this level falls short of the pre-crisis level of 85% in 2006, it is an important indication that the economy is recovering from the impact of the global recession. Economic uncertainty in the Eurozone is a major factor impeding full recovery in the sector.

Capacity utilisation in manufacturing: 2006-2012