South Africa's Mining Output Jumps 8.2% While Factory Production Falls 2.9%

July 6, 2026
By Mintesinot Nigussie

South Africa's mining sector expanded sharply in April, offsetting weakness in manufacturing and other industries, as the country's latest economic indicators pointed to an uneven recovery across key sectors.

Statistics South Africa reported that mining production rose 8.2 percent year on year, driven largely by a 36.5 percent increase in platinum group metals output, which made the biggest contribution to overall mining growth. Production also increased for nickel, manganese ore and chromium ore, while output declined for diamonds, copper, coal, iron ore and gold.

In contrast, manufacturing production fell 2.9 percent from a year earlier, with six of the country's 10 manufacturing divisions recording lower output. The basic iron and steel, non-ferrous metal products and machinery division weighed most heavily on the sector's performance. Textiles and clothing was the strongest-performing division, posting growth of 7.7 percent, while petroleum, chemicals, rubber and plastic products remained unchanged.

The mixed industrial performance came as electricity generation declined 9.0 percent year on year to 17,901 gigawatt-hours in April, the lowest monthly output since the COVID-19 lockdown in April 2020. Excluding the pandemic period, electricity production was at its weakest level since February 2002.

Other sectors also showed contrasting trends. Retail sales increased 1.3 percent compared with a year earlier, supported by gains among general dealers, household furniture and appliance retailers, and other retail businesses. Motor trade sales rose 6.5 percent, reflecting a 14.0 percent increase in new vehicle purchases and a 13.4 percent rise in used vehicle sales.

Tourist accommodation income climbed 6.5 percent, driven by hotels, guest houses and other accommodation providers, although caravan parks and camping sites recorded an eighth consecutive year-on-year decline.

Statistics South Africa also reported that real gross domestic product expanded 0.5 percent in the first quarter of 2026, extending the economy's growth streak to six consecutive quarters. Finance, agriculture, trade and transport were the main contributors to growth, while manufacturing contracted for a second straight quarter.

On the demand side, economic growth was supported by higher household consumption, increased government spending, stronger exports and lower imports.

Inflationary pressures continued to build during the period. Consumer inflation accelerated to 4.5 percent in May from 4.0 percent in April, the highest annual rate since July 2024. Fuel prices were the main driver, with petrol prices rising 24.8 percent and diesel prices increasing 53.8 percent from a year earlier.

Producer price inflation also strengthened, rising to 7.8 percent in May from 4.8 percent in April, marking its highest level since April 2023.

Source: FSX Business News