MINING

PRODUCTION DROPS 9.1 PERCENT

MINING production slumped 9.1 percent year-on-year in August following a downwardly revised 4.1 percent fall in July. Data from Statistics South Africa showed the 5.2 percent decline was above market expectations of 4 percent and the biggest since March 2016. Seasonally adjusted output fell 1.2 percent in August, compared with July. Iron ore recorded the biggest fall, 19.9 percent, with gold decreasing by 15.5 percent. Mining accounts for 7 percent of gross domestic product. Mike Schussler, director at Economists.co.za, said the decline would have a knock-on effect across the economy. “Mining production is in serious trouble. It’s a primary sector of the economy as it buys products and services from other sectors,” he said. Mining was a contributor to economic growth in the second quarter after a dismal performance in the first quarter. Lara Hodes, an economist at Investec, said the base effects from last quarter’s lift and waning commodity prices had weighed on production. | Dineo Faku