THE country’s manufacturing sector growth trajectory experienced in the last few years has hit a snag, with volumes output declining by 14,8%, Zimbabwe National Statistics Agency survey (Zimstat) has established.
Despite industry confirming relative improvements of other important resources like foreign currency and raw materials, incessant power cuts which choked the entire nation since last year negatively choked productivity, in part contributing to dwindled volumes outcomes.
The Volume of Manufacturing Index (VMI) covering the period first quarter 2019 to 1st quarter 2023 shows significant volumes output during the period.
“The VMI for the first quarter of 2023 was 289.5, reflecting a year on year percentage decrease of 14, 8 points when compared to 339,6 recorded in 1st quarter 2022.
“The quarter-on-quarter comparison shows a 42, 5% decrease in the index from 503, 7 recorded in the fourth quarter 2022 to 289,5 in 1st quarter 2023,” said Zimstat.
The report shows that in the Food Stuffs manufacturing sector, overall output decreased by 37,6% on a quarter on quarter basis.
The Drinks, Beverages and Tobacco production index for the period waned by 62,4% on a year on year basis and 60,3% on a yearly basis.
The Textiles sub-sector yearly output decreased by 6% and minus 41, 4% on a quarterly basis while the Clothing and Footwear recorded 13, 8% decrease when compared to the fourth quarter of 2022.
The study shows that the Metals and Metal Products registered a yearly decrease of 2,7% and a quarterly decrease -58,3%.
Construction of the VMI is based on administrative data. In order to get volume measures, the turnover was deflated using Producer Price Indices of the respective subsectors.
The Laspeyres index formula was used in compilation, using February 2019 as the base period.
The index calculation is in line with the United Nations’ International Recommendations for the Index of Industrial Production.
Source NewZimbabwe
