As rolling power cuts intensified in September, data this week showed that the economy's industrial arms got off to a faltering start in the third quarter (Q3) of this year. Mining production fell, while manufacturing output expanded at a slower rate in July. With the return of Stage 6 power cuts in the quarter's final month, it all bodes ill for the Q3 GDP number.
South Africa dodged a winter of discontent, but the economy remained in the doldrums.
Data released this week by Statistics South Africa (Stats SA) painted a bleak picture of industrial production in July, suggesting a loss of what little momentum there was after the economy grew by a faster-than-expected 0.6% in Q2.
Manufacturing production, a key driver of Q2 GDP growth, expanded at a much slower rate in July on an annual basis than it did in any of the previous three months, while mining output tanked, maintaining its long-term decline.
Stats SA data on Monday showed that manufacturing output rose by 2.3% year on year in July after climbing by 5.9% in June. In May it posted annual growth of 2.5%, and 3.6% in April. On a monthly basis, it declined by 1.6%, its biggest monthly dip so far this year.
The mining data published on Thursday were more dire. Mining production fell by 3.6% year on year in July, far undershooting the Bloomberg consensus forecast of a 0.2% contraction.
Platinum group metals (PGM) production led the way with a 10.4% decline, underscoring the woes of a sector that has seen the record prices and earnings of two years...