Mining and manufacturing output improves but rocky road lies ahead
Both sectors face challenges, particularly Eskom power cuts, which are expected to weigh on SA’s recovery
Mining and manufacturing data for July showed that the pace of the annual decline in these key sectors of the economy, which were some of the biggest drags on growth during the second quarter, has eased off.
Though this may hint at the first signs of recovery, both industries still face an uphill battle as the economy opens up, not least because of electricity supply constraints. These are expected to weigh heavily on SA’s economic recovery potential in the coming months, say economists.