Fixed investment in KwaZulu-Natal is enjoying mixed fortunes as the weaker rand makes imports expensive, but export demand seems strong. The total investment index of the province’s fixed investment monitor, as compiled by Mike Schüssler of Economists.co.za, grew 2.1% year-on-year and 4.9% quarter-on-quarter. While the January growth numbers for the longer and the shorter term were the best in more than a year, a year-on-year growth figure of 2.1% is not great for KwaZulu-Natal. Fixed investment may be doing better than it has for the whole of 2013, but during 2011 and 2012 investment often grew in double digits. 2013 was a particularly bad year for fixed investment in KwaZulu-Natal and that makes the January growth number seem positive.

Transport index declines
One of the factors that held back investment growth in KwaZulu-Natal was the 11.9% year-on-year fall in the transport index. Quarter-on-quarter investment in transport equipment was down 4.6%, the first decline in seven months. The main reason behind the fall of investment in transport equipment was the continued fall in investment in air and sea transport equipment, which was down 46.7% from a year ago. This was the biggest decrease in 17 months and it is unlikely that the decline will get bigger than this. If it does, it will continue to pull down the whole investment index.

Investment in land transport equipment grew 6.4% and while the growth was good news, it slowed down compared to the previous two months, an indication that small businesses are still struggling and may be slowing down  their investment plans.

Click below link to download KZN Investment Monitor Jan 2014: