Economic data from the week for mining and manufacturing showed that there is not much hope for GDP in the third quarter to increase much.
Economic data from the week for mining and manufacturing showed that there is not much hope for GDP to increase much in the third quarter.The domestic data releases were mixed this week, with a downtick in manufacturing in August, but mining output looked a little better. The rand lost some ground this week, while there is ongoing concern about oil prices due to the escalating conflict in the Middle East.
Isaac Matshego and Busisiwe Nkonki from the Nedbank Group Economic Unit say the rand traded weaker against the dollar, closing at around R17.50/$ on Thursday as global market jitters remained elevated due to the Middle East tensions. “However, rising crude inventories in the US and a cautious demand outlook, especially after China’s lacklustre stimulus measures, tempered the rally. The US Energy Information Administration also slashed its demand forecast for 2025, citing slowdowns in key economies.”
“In addition, the past 12 months have not been easy for the majority of mining companies. While producers of gold and iron ore profited from favourable commodity prices, producers of coal and PGMs faced sharp price declines.
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