S.Africa mining and manufacturing output slows: official data

9th October 2014, Comments 0 comments

South Africa's mining production shrank by 10.1 percent in the year to August, led by the volatile platinum industry which is recovering from a long strike, official figures showed on Thursday.

According to the national statistics agency, platinum group metals recorded an 11.6-percent dip, followed by gold which dropped 1.1 percent.

South Africa's platinum mining sector was rocked this year by a five-month wage strike at three top producing firms. The stoppages at Anglo American Platinum, Impala Platinum and Lonmin in the Rustenburg platinum belt slashed profits.

The strike ended in June with the signing of a three-year wage deal.

Nedbank, one of South Africa's major banks, cautioned that "activity is likely to remain lacklustre" through to the end of the year.

The bank said lower commodity prices and infrastructure constraints were also likely to "keep output relatively weak."

Figures by Statistics South Africa also revealed that the country's manufacturing production for August declined by 1.2 percent.

The figures came ahead of the mid-term budget announcement later this month, which is likely to show revised economic growth figures.

South Africa, with Africa's most developed economy, is battling high jobless rates, with growth lower than that of smaller economies in the region. The country managed 0.6-percent growth in the second quarter.


© 2014 AFP

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