Mining slump deepens as July output plunges 7.5%, manufacturing offers some relief

South Africa’s mining sector remained under pressure in July, with output falling 7.5% year-on-year.

The mining sector continued on its path of contraction at the start of the third quarter, with July output data showing a 7.5% year-on-year decline, outpacing consensus expectations of a 4.0% drop.

This followed year-on-year declines of 4.3% in June and 5.1% in May.

According to Stats SA and FNB Economics, ten of the 12 mining sectors saw declines, with diamond output dropping by 48.2%, nickel by 18.8% and platinum group metals by 13.5%. Only two sectors saw growth, namely chromium ore, at 13.7%, and manganese ore, at 4.9%.

Seasonally adjusted mining output declined by 1.9% month-on-month, following a revised 0.1% expansion in June.