DStv Channel 403 Monday, 23 December 2024

SA's electricity crisis | Factory activity drops with power cuts

JOHANNESBURG - Evidence of the severe impact of power cuts on the economy continues to emerge in industry reports and surveys.

ABSA’s Purchasing Managers Index fell sharply in February.

READ: Eskom preparing schedules beyond Stage 8

At 48.8 points, the Index fell below the neutral 50-point mark, pointing to a marked deterioration in business conditions in the factory sector.   

Manufacturing is SA’s fourth-largest industry, contributing 14 percent to GDP.

Researchers say the period included an unprecedented seven consecutive days of Stage 6 power cuts, which was likely top of mind for many respondents.

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