Mining output plunges in December and is likely to drag down fourth-quarter GDP
The mining industry’s best-performing sector was iron ore, which grew 15.9% in December from the same month in 2016
Mining production growth disappointed in December, plunging to 0.1% from November’s 6.5% and October’s 5.3%.This was a far bigger slowdown than anticipated by economists.Investec economist Kamilla Kaplan expected mining to moderate to 5.7% while macroeconomics website Trading Economics projected mining output to ease to 3.4%.Mining appears likely to drag down the fourth quarter’s GDP growth figures, which use quarter-on-quarter seasonably adjusted figures.Statistics SA reported on Thursday that the three-month seasonably adjusted change for mining was negative 1.7%, and the month-on-month seasonably adjusted change was negative 3.1%.The mining industry’s best-performing sector was iron ore, which grew 15.9% in December from the same month in 2016.Gold production declined 12.4% and coal 5.5%.The mining industry’s total sales in current prices came to R41.2bn in December, taking the total for 2017 to R460bn.
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.