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.

South African #mining production fell by 3,4% in Q1: 2019 compared with Q4: 2018. Production was also down 1,1% y/y in March 2019 #StatsSA https://t.co/5CI8jdiMqu pic.twitter.com/xyGRbptjtz

— Stats SA (@StatsSA) May 9, 2019

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.

#Manufacturing production fell by 2,4% in Q1: 2019 compared with Q4: 2018. Petroleum and chemicals, motor vehicle accessories, and wood and paper were the main drags on overall manufacturing activity #StatsSA#Listen here for more: https://t.co/fp8PpEVsJM pic.twitter.com/YN1Opg0UkN

— Stats SA (@StatsSA) May 9, 2019

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.

SA #electricity generation decreased by 2,9% y/y in March 2019. Generation fell by 1,0% in March 2019 compared with February 2019. This followed m/m changes of -0,2% in February 2019 and -0,9% in January 2019 #StatsSA https://t.co/QZ97AY0439 pic.twitter.com/Tzs2bf1ObG

— Stats SA (@StatsSA) May 2, 2019