ECONOMIC WEEK AHEAD: Economists expect rebound in mining and manufacturing
Mining and manufacturing are poised to report a strong recovery for January 2018. But growth in the coming months may be tricky as uncertainty over the dollar and China’s economic expansion clouds the outlook for commodity prices, a key factor for the performance of both industries. Domestically, new Mineral Resources Minister Gwede Mantashe’s success in undoing policy bottlenecks that continue to crimp investment and activity in the sector will be key to it growth, said BNP Paribas economist Jeffrey Schultz. "While a rebound in the year-on-year growth rate in mining production is probably likely in January, the bigger picture for the mining industry remains challenging." The stronger currency in recent months had lowered the rand gold price considerably and resulted in many large gold miners to be loss-making. Investec’s house view is that mining has grown at 5% year on year in January from December’s 0.1% year on year. "Lower statistical base factors in January 2017 account for so...
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