SA's mining sector in August had its biggest contraction in more than two years, but the economy is still expected to record growth in the third quarter. Mining production decreased 9.1% year on year in August 2018 after a contraction of 5.2% in July. This was the biggest contraction since March 2016. A Bloomberg survey of economists had expected a 4% contraction. The sector is likely to contract in the third quarter as it revised its gains in the second quarter. SA plunged into a recession for the first time since the global financial crisis, recording a contraction in the first half of the year. “The second consecutive notable decline in mining production data is a stark reminder that the mining sector is by no means out of the woods yet, with a growing probability that the mining sector will be a negative contributor to third-quarter GDP growth,” said NKC economist Elize Kruger. Despite this, growth in the retail and manufacturing sectors would probably boost the economy enough t...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now