Economists expect the spate of weak industrial data from SA’s manufacturing and mining sectors to continue this week and are bracing for another quarter of subdued GDP growth for the economy as a whole. Manufacturing and mining production figures for May will be released by Statistics SA on Thursday but there is little sign that the production side of the economy has sloughed off the dismal performance it exhibited in the first quarter. In fact, the Absa manufacturing purchasing managers’ index has continued to slide, from 50.9 in April to 49.8 in May. In June Eskom cut electricity supply as a result of industrial action. Capital Economics’s GDP tracker confirms fears that SA’s overall economic contraction probably deepened in the second quarter. "Domestic demand remains relatively subdued and growing fears of a trade war, coupled with concerns about a slowing global economy, are likely to have hampered output," warns FNB senior analyst Jason Muscat. Manufacturing activity BNP Parib...
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