KZN Provincial Treasury - KwaZulu-Natal Investment Monitor2014-07-10 Fixed investment in KwaZulu-Natal is suffering due to the lack of confidence in the South African economy as a result of the protracted strike in the platinum industry. The total investment index of the latest KwaZulu-Natal investment index, as compiled by Mike Schüssler of Economists.co.za, declined by 4.3% year-on-year, the 11th consecutive month of decline. Quarter-on-quarter fixed investment fell 0.8%.
Transport equipment investment fell Investment in transport equipment in KwaZulu-Natal declined 2.9% year-on-year and while this is an improvement after six months of double-digit declines, investment in medium and light commercial vehicles fell, which is a sign that ordinary businesses in the province are not very confident about the future of the economy, even though the province's roads may look busy. While the strike is a contributing factor, some businesses probably purchased vehicles in anticipation of the rand's weakening. Even so, six consecutive months of decline in land transport equipment investment is not good news. The good news about transport equipment was that investment in boats and airplanes increased 10.5%, the first increase in more than a year. These big-ticket purchases are, however, very volatile as something like airplanes are not brought into the country every month. Click to download KZN investment Monitor for March 2014: KwaZulu-Natal Investment Monitor March 2014.docx - 1.4 Mb Click on below links to view some interesting articles. There are some fascinating facts and figures for KwaZulu-Natal: KZN Airports Movements.xlsx - 0.1 Mb KZN Not Looking for a Job.xlsx - 0 Mb The State of the Civil Construction Industry 2014
The FNB/BER construction confidence index fell by 11 index points, from
66 to 55 in 1Q2014. Even though confidence decreased noticeably, the current level of the index still means that the majority of respondents were satisfied with prevailing business conditions during 1Q2014. A moderate increase in construction work during the quarter helped keep confidence above the neutral 50-index point level. “However, a more robust increase in construction work was expected than was actually realised during 1Q2014. This disappointment likely weighed on confidence, even though the pace of construction activity itself rose†said Sizwe Nxedlana, chief economist at FNB. Click below link to view Civil Construction industry for 2014 article: CivilPr_14Q1.pdf - 0.1 Mb
Dr Clive Coetzee
General Manager: Infrastructure Management and Economic Services
KZN Provincial Treasury
Economist (PhD UKZN)
033 897 4538 |
KZN Provincial Treasury - KwaZulu-Natal Investment Monitor
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