News Desk Reporter
Persistent pressure on electricity generation and manufacturing continues to weigh on economic growth. However, stronger performances in mining, retail trade and other sectors are helping to cushion the impact.
That is according to Statistics South Africa’s (Stats SA) latest economic review, released this week.
The report shows that while some industries are recovering, major structural challenges continue to hold back broader economic growth.
One of the biggest concerns remains electricity production. Generation fell by 9% in April compared with the same month last year. Seasonally adjusted production dropped to 17 901 gigawatt-hours (GWh). That is the lowest level recorded since the country’s strict COVID-19 lockdown in April 2020.
Excluding the lockdown period, it is the weakest monthly electricity output since February 2002. The figures highlight the continued strain on the country’s energy supply.
Reliable electricity remains critical for businesses. It supports production, investment and economic activity across industries.
Manufacturing also remained under pressure in April. Production declined by 6.3% year-on-year. Seven of the country’s ten manufacturing divisions recorded lower output.
The petroleum, chemical, rubber and plastic products industry recorded the biggest decline. Manufacturers of motor vehicles, parts and accessories also posted weaker production. The food and beverages industry added to the slowdown.
Mining, however, recorded a strong recovery. Production increased by 7.7% compared with April last year. It was the sector’s strongest annual growth in more than three years.
Platinum group metals, coal and iron ore made the biggest contribution to the increase. The figures point to improved production across several key commodities.
Retail trade also remained resilient. Sales rose by 5.1% year-on-year. Growth was driven by strong consumer spending at general dealers. Retailers selling clothing, footwear and textiles also performed well.
The figures suggest household spending has remained resilient despite pressure from the high cost of living.
Other sectors also posted gains. Wholesale trade recorded higher sales during the month. The accommodation industry benefited from increased spending by travellers.
This resulted in higher income for hotels and other establishments.
The report brings together key economic indicators across several sectors. While mining and consumer spending continue to provide support, weak electricity generation and slowing factory output remain major obstacles to stronger and more sustained economic growth.