Mining production decreases by 1.1%

SABC News Mining - Mining production decreases by 1.1%

The mining sector continues to take strain. Statistics SA data shows mining production decreased by 1.1% year-on-year in March.

The sector has been on a contraction trend for the past five months, with a deep contraction of 8.1% year-on-year in February.

The largest negative contributors to the March contraction were gold and other non-metallic minerals. The main positive contributor was coal.

The performance of the mining sector has been affected by the deceleration in global trade volume growth and rising domestic operating costs.

There has been an increase in fuel prices and electricity tariffs eroding competitiveness. The sector has also been impacted by electricity supply interruptions.

Meanwhile, Stats SA data shows manufacturing production increased by 1.2% year on year in March.

The largest positive contributions were made by petroleum, chemical products and plastic products.

FNB economists say they expect a rebound in manufacturing production in the second quarter due to the lack of load-shedding. They however, say the constrained domestic demand will likely prevent the sector from trending sustainably higher.

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