Mining production decreases as manufacturing shows slight improvement

SABC News Mining - Mining production decreases as manufacturing shows slight improvement

Stats SA data shows mining production decreased by 3.3% year-on-year in January as pressure on the sector continues. The negative contributors were in iron ore, gold, diamonds and coal.

The largest positive contributor was the Platinum Group Metals.

The mining sector has endured challenges with policy certainty impacting on investments. The sector also faces subdued commodity prices on the back on weak international trade and the on-going global trade tensions. The high electricity tariffs and disruptions in power supply pose another challenge for the sector.

Manufacturing production has shown slight improvement in January, but below markets expectations.
Data from Stats SA shows manufacturing production increased by 0.3% in January 2019 when compared with January 2018. Economists had expected an increase to 1.2% year on year.

Manufacturing production is up from a revised flat reading of 0% year on year in December 2018.

The largest positive contributions were made by the food and beverages as well as petroleum and chemical products. The largest negative contribution was made by the basic iron and steel, metal products and machinery division.

On a month-on-month basis, factory production contracted by 2% in January. The sector suffers low demand as a result of the weak economy. High input costs as a result of higher electricity tariffs and interrupted power supply also weigh on the sector.

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