Production dip dashes growth hopes
Data paint a bleak picture of fourth-quarter prospects
Disappointing mining and manufacturing output, and a weak reading of consumer confidence dashed hopes of a stronger economic recovery in the fourth quarter of 2016. Mining sector output plunged 2.9% year on year in October versus the 2.5% growth that the market expected after a revised 4.7% increase in September. The decline was the result of a 12% year-on-year drop in platinum group metal output, which caused headline output to slide 2.5%. Output has declined amid policy uncertainty and tension between the mining sector and the government over the Mining Charter. The sector employed 400,000 people directly and contributed R11.3bn in annual taxes, the Chamber of Mines said in a presentation to Parliament on Wednesday. Real mining GDP has fallen 2.7% over the past two-and-a-half years, while financial services GDP increased more than 100% over the same period. Chamber of Mines economist Henk Langenhoven said the uncertainty was a long-term challenge. "Hard decisions are being taken d...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.