Manufacturing volumes dip in first quarter

Zimbabwe’s volumes index for the first quarter of 2023 came in at 289,5 according to figures released by the Zimbabwe National Statistics Agency (ZIMSTATS) during the inaugural volume of manufacturing index dissemination.

ZIMSTATS director general, Taguma Mahonde said; “The first quarter 2023 volume of manufacturing Index was 289,5, reflecting a year-on-year percentage decrease of 14,8 when compared to 339,6 recorded in first quarter 2022.

“The quarter-on-quarter comparison shows a 42,5 percent decrease in the index from 503,7 recorded in the fourth quarter of 2022.”

Manufacturing index comprises subsectors including food stuffs; drinks, beverages and tobacco; textiles; clothing and footwear; chemical and petroleum products; transport and transport equipment sectors among others.

For the subsectors, the average output index for food stuffs in the first quarter of 2023 was 390,3 compared to 625,2 recorded in the fourth quarter of 2022.

The 37,6 percent decrease in food stuff production quarter on quarter is mainly due to the decrease in aggregate demand in the quarter under review, whilst in the fourth quarter festive season spending causes such a high output index.

In comparison with the first period last year there was an increase in the food stuff index from 370,8 recorded in the first quarter of 2022.

According to ZIMSTATS, the drinks, beverages and tobacco production index for first quarter 2023 was 221,8 and the index decreased by 62,4 percent from the first quarter 2022 value of 590,5.

The drop was attributed to the power shortages, foreign currency problems and low aggregate demand that was prevalent in the first quarter.

Quarterly analysis showed that the subsector was 60,3 percent down from 558,6 recorded in the fourth quarter 2022, which is not abnormal due to the festive season’s increased aggregate demand.

“Textiles sub-sector recorded an output index of 26.5 in first quarter 2023, compared to 28,2 in first quarter 2022, resulting in a year-on-year percentage decrease in the index of 6,0. The quarter-on-quarter percentage change was -41,4,” the director general said.

“Clothing and footwear output index for first quarter 2023 was 437,4, leading to year-on-year percentage increase of 434,7. The quarter-on-quarter output index had a percentage decrease of 13,8.”

According to the statistical agency, the drop is mainly due to the closed period the sector experiences which runs from mid-December to end of January the following year.

The output index for paper, printing and packaging sub-sector was 600,2, up from 521,2 in first quarter 2022, resulting in a year-on year increase in the index of 15,2 percent. Quarterly comparison showed a 1,0 percent increase in the output index from the fourth quarter.

Mahonde added; “The first quarter 2023 output index for Chemicals and Petroleum Products was 231,0, resulting in a year-on-year percentage increase of 269,6 when compared to 62,5 recorded in first quarter 2022. The sub-sector recorded a quarter-on-quarter percentage increase of 5,0 from 220,0 in the fourth quarter of 2022.”

According to ZimStats, the increase is mostly due to the expansion of the pharmaceutical industry, which is pushing the manufacturing capacity of the subsector.

The mon-metallic mineral products index which includes cement production in the first quarter of 2023 was 184,7 depicting a year-on-year decrease of 33,5 percent from 277,6 recorded in the first quarter of 2022.

Quarterly comparison of the sub sector showed the index declining by 61,2 percent between fourth quarter 2022 and first quarter 2023 due to foreign currency problems and electricity shortages experienced in the quarter.

“The first quarter 2023 production index for metals and metal Products was 210,7, recording a year-on-year percentage decrease of 2,7 in comparison with the first quarter 2022 index of 216,6. The quarter-on quarter percentage change in the index compared to fourth quarter 2022, was -58,3,” said Mahonde.

The first quarter 2023 production index for transport and transport equipment was 100,4, recording a year-on-year percentage increase of 1,4 in comparison with the first quarter 2022 index of 99,0.

Quarter-on quarter percentage change in the index compared to fourth quarter 2022, was -70,0.

The statistical agency said it will be publishing the volume of manufacturing index statistics every quarter with 2019 being the base year.-ebusinessweekly