Mining production surprised to the upside by 3.9% in October 2023 compared to October 2022, according to data released by Statistics South Africa.
October marks the first upturn in industrial activity after three consecutive months of decline. Meanwhile, Manufacturing production in South Africa exceeded market expectations rising by 2.1% in October of 2023, compared to the same period last year.
The largest positive contributors to the surprise jump in mining production in October came from platinum group metals, manganese ore, and chromium ore.
On a month-on-month basis, mining production increased by 2.1% in October compared with September 2023.
The Data shows that mineral sales at current prices decreased by 0.7% in October 2023.
Investec Economist, Lara Hodes says, “A breakdown of the mining production data indicates that PGMs was the largest positive contributor to the headline outcome adding four percentage points on the back of growth of 16,9% year-on-year production of manganese ore and chromium ore added a further 1,3%. However, notwithstanding the October results, the fragile global environment especially the subdued manufacturing sector continues to weigh significantly on commodity demand.”
Manufacturing production increased by 2.1% in October 2023, rebounding from a downwardly revised 4.1% decline in September 2023.
The largest positive contributions to manufacturing production came from petroleum, chemical products, rubber and plastic products, and motor vehicles, and other transport equipment.
Stats SA Nicolai Claassen explains, “Other divisions that recorded positive growth include metals and machinery products, electrical machinery, wood paper products, printing and publishing and furniture and manufacturing. All manufacturing divisions recorded weaker year-on-year results in October, these were food and beverages communications and professional equipment, class and metallic mineral products and textile and clothing.”
Seasonally adjusted manufacturing production decreased by 0.2% in October 2023, compared with September 2023.
