André Roux Quotations

The decline in the price index was supported by the further currency appreciation to levels below R6.30/US$ at year-end, as well as the moderation in local energy prices.

The slight depreciation of the rand during March seems to have impacted positively on both the export performance of manufacturers as well as the degree of import competition. This is a positive development. However, compared to other sectors of the South African economy (excluding mining), where both activity and confidence are at high levels, the manufacturing sector is clearly still under pressure.

Activity has now contracted for two consecutive months, albeit mildly. As noted in the January release, the sustained strength of the rand exchange rate probably explains much of the pressure on manufacturing.

However, given the anticipated revenue overrun, he is likely to be forced to reduce all marginal income tax rates.