Huge growth in mining production in August surprises market analysts
Mining surprised on the upside in August with exceptionally strong growth, indicating that GDP growth might be stronger in the third quarter. Mining production increased a significant 6.9% year-on-year in August after lifting 0.9% year-on-year in July. The biggest positive contributors were iron ore, which added 1.3 percentage points; diamonds 1.2 percentage points and gold 1.1 percentage points. Seasonally adjusted mining production increased 5.3% in August compared with July, and increased 1.4% in the three months ended August 2017 compared with the previous three months. Many economists were expecting a contraction in the sector. FNB economist Mamello Matikinca expected a year-on-year contraction for the first time in 2017, primarily due to the higher base of August last year. "The global oversupply of iron-ore has pushed the price of the commodity lower, and output of the ore, which accounts for nearly 15% of mining production, should have softened," she said. Investec economist...
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.