Data released by Statistics South Africa has shown a decline in both the mining and manufacturing sectors, with economists believing it could possibly point to a recession in the first quarter of 2023.
Mining production experienced its 12th consecutive month of year-on-year decline, recording a decrease of 1.9%.
The largest contributor to the decline was the Platinum Group of Metals contracting at 15.2 percent and diamonds at 15.5 percent.
Meanwhile, manufacturing output fell by 3.7% year-on-year in January.
Nedbank economist Crystal Hantley explains.
“The main reasons for the contraction were petroleum, motor vehicle parts, accessories, and iron and steel products. So both mining and manufacturing are the most energy intensive sectors, and high levels of load shedding, and weaker global environment and other constraints have really been hurting production.”