Mining production output for July 2018 is disappointing.
Data that Statistics South Africa has released shows a significant decline in mining production which decreased by 8.6% in July 2018, compared to June 2018.
On a year-on-year basis, mining production also declined by 5.2% in July 2018, compared to the same time in 2017.
The largest contributor to the slowdown came from gold, iron ore and coal.
Economist at Econometrix Laura Campbell says, “It’s unlikely that we will see a significant difference and sharp recovery in mining output until such time that as there is certainty regarding the mining charter. The draft version has been criticised by industry players who say it will not encourage investment in this sector which is so desperately needed. The weak mining production figures contribute towards the likelihood that the Reserve Bank will keep interest rates unchanged next week.”
