Production in the mining and manufacturing sectors has declined further, signaling an unsatisfactory business environment. Data from Stats SA shows mining production in June contracted by 8% when compared to the same time last year.
Manufacturing production in the same month contracted by an annual 3.5%.
Mining and Manufacturing were impacted by the intense load shedding during the winter months. They also continue to battle supply chain disruptions and tighter global monetary policies.
Both sectors are also still recovering from the devastating floods in KwaZulu-Natal.
Production in the mining sector contracted for the 5th consecutive month, with the largest negative contributors to the June decline coming from the gold, platinum group metals and coal sectors. The largest negative contributions to manufacturing production came from motor vehicles, parts and accessories as well as food and beverages.
The negativity spells bad news for employment in both sectors. Economist Chifi Mhango, believes the negativity in both sectors will also translate into a lower GDP contribution in the second quarter.
Production in the mining and manufacturing sectors has declined further:
