Analysts say the latest mining and manufacturing production numbers have come in worse than expected.
Statistics South Africa says manufacturing production decreased by 3.2% in June compared to the same time last year.
The largest negative contributors came from petroleum, chemical products, basic iron and steel as well as wood and wood products.
Mining production declined by even more at 4.2% in June compared to the same time last year.
Major drops came from gold, diamonds and platinum group metals.
Economist at Nedbank Nicki Weimar says there has been a decline in exports and imports.
“They are all export-orientated industries. So if you think what you’re starting to see is that the escalating trade war between China and the US is hurting activity in China, you, therefore, have actually seen a decline in Chinese exports and imports and that actually determines demand for our products. Added to that commodity prices have been weakened to stagnant and that hasn’t helped the fate of either mining or manufacturing.”
South African #mining production increased by 3,5% in Q2: 2019 compared with Q1: 2019. Iron ore, manganese, and coal were the largest contributors to growth #StatsSA
Listen here for more: https://t.co/llQ1tCn9Rs pic.twitter.com/AAdLIL7u7l— Stats SA (@StatsSA) August 8, 2019
#Manufacturing production edged up 0,6% in Q2: 2019 compared with Q1: 2019. However, production was down 3,2 y/y in June 2019 #StatsSA Listen here for more: https://t.co/giG1e7CAg5 pic.twitter.com/OM4wsuunEx
— Stats SA (@StatsSA) August 8, 2019