Production in the mining and manufacturing industry fell further, indicating an unsatisfactory business environment. Data from Stats SA show that mining production fell by 8% in June compared to the same period last year.
Industrial production in the same month decreased by 3.5% year-on-year.
The mining and manufacturing industry suffered from severe load shedding during the winter months. They also continue to struggle with supply chain disruptions and tighter global monetary policy.
Both sectors are also still recovering from the devastating floods in KwaZulu-Natal.
Mining production fell for the 5th month in a row, with the gold, platinum group metals and coal sectors making the biggest negative contributions to the decline in June. Automobiles, spare parts and accessories, as well as food and beverages made the biggest negative contribution to manufacturing.
The downside is bad news for employment in both sectors. Economist Chifi Mango believes that the negativity in both sectors will also reduce the GDP contribution in the second quarter.
Production volumes in the mining and processing industry decreased even more:
