Mining contracts in October for third consecutive month

Mining production fell for the third-consecutive month in October, pointing to a dismal fourth quarter, as SA counts the costs of the latest round of load-shedding.

Mining contracted 2.6% in October compared to the same period in 2018, worse than the Bloomberg consensus of a 2.6% fall.

Copper led the declines, falling 41.4%, while diamond production slumped 39.3%.

The risk of a full-quarter slump increased this week after technical problems at Eskom resulted in widespread power cuts, Capital Economics senior emerging markets economist John Ashbourne said in a note.

gernetzkyk@businesslive.co.za