Economist expects the manufacturing sector’s 'worst performance since the global financial crisis', writes Asha Speckman
Mining, manufacturing and energy sectors reel from the impact of unprecedented load-shedding during the first quarter of the yearA cocktail of negative domestic and international factors tipped the mining and manufacturing sectors into contraction during March. It also set the manufacturing sector on course for its worst performance since the 2008/2009 global financial crisis.
The effect of electricity shortages, coupled with low household and corporate confidence, weaker domestic and global demand, higher electricity tariffs and rising fuel prices, are is forecast to have resulted in manufacturing contracting 8.4% quarter on quarter, which has been adjusted for seasonal variations.
The mining industry was hit by the ongoing strike in the gold sector at Sibanye-Stillwater, which ended in mid-April. The mine is SA’s largest gold producer and among the world’s top gold miners. NKC forecast a contraction of 16.5% for mining in the first quarter of this year amid weak commodity prices. This would be the industry’s worst reading in three years. Kruger predicted a contraction of 6.9% for March, this after the sector contracted by 7.5% year-on-year in February this year.
RMB economists Mpho Tsebe and Siobhan Redford said in a research note that the negative effect of intense power cuts meant that growth during the first quarter of this year may contract 1.7%. And for the year as a whole “this means that growth will need to average 2.2% over the next three quarters for 2019’s growth to be 1% year on year, which seems unlikely”.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ECONOMIC WEEK AHEAD: Mining data to lag, manufacturing likely to hit 2008 lowsEconomist expects the manufacturing sector’s 'worst performance since the global financial crisis', writes Asha Speckman
Read more »
ECONOMIC WEEK AHEAD: Indicators to reflect the weak economyLocal trade figures, activity in the manufacturing sector, credit and vehicle sales updates will be released, writes Sunita Menon
Read more »
Gold headed for worst week since end-March ahead of US jobs dataGold is down about 1.2% so far this week, with silver and palladium also dipping slightly
Read more »
POLITICAL WEEK AHEAD: All eyes on Wednesday’s poll resultsAccording to a recent opinion poll by Ipsos, the ANC is on course to win its sixth national election with more than 60% of the vote, writes Bekezela Phakathi
Read more »
POLITICAL WEEK AHEAD: All eyes on Wednesday’s poll resultsAccording to a recent opinion poll by Ipsos, the ANC is on course to win its sixth national election with more than 60% of the vote, writes Bekezela Phakathi
Read more »
POLITICAL WEEK AHEAD: Action moves to Gauteng in final push to win votersMain parties to hold rallies in Joburg ahead of elections, writes Genevieve Qunital
Read more »
MARKET WRAP: JSE slips ahead of data-heavy weekVolumes on the local bourse were low on Monday, ahead of a busy week in terms of global economic news, as well as Wednesday's public holiday
Read more »
MARKET WRAP: JSE slips ahead of data-heavy weekVolumes on the local bourse were low on Monday, ahead of a busy week in terms of global economic news, as well as Wednesday's public holiday
Read more »
Health department appeals for public participation in immunization surveyThis week is World Immunisation Week.
Read more »
Amcu 'positive' after meeting with labour department over registrationThe Association of Mineworkers of Construction Union (Amcu) says its positive after its meeting with the registrar of labour relations where they 'made it clear' that they were in 'total compliance' with the constitution.
Read more »
Over 774,000 South Africans to cast special votes next weekElection officials will visit just over 450,000 voters at home, who are unable to make their way to a voting station on 8 May.
Read more »