During the three months ended June 30, the total turnover of all industries in the South African economy, excluding agriculture, financial intermediation, insurance and government institutions, declined by 0.5% quarter-on-quarter to R1.86-trillion, with the mining and manufacturing sectors having shown significant declines, data released by Statistics South Africa (Stats SA) on Monday showed.

During the quarter, the turnover of the mining and quarrying sector was down 5.7%, while manufacturing turnover declined 2.5%.

Statistician-general Pali Lehohla said the decline in the mining and quarrying sector was as a result of lower tonnages sold, combined with the effects of industrial action, while lower sales led to the decline in the manufacturing turnover.

However, he pointed out that mining and manufacturing turnover had increased 1.9% and 9.4% respectively year-on-year.

Meanwhile, community, social and personal services, also showed a 4.5% quarter-on-quarter decline in turnover, while trade was down 0.2%.

However, turnover increases were recorded for the electricity, gas and water supply sector, which gained 14.5%; the construction sector, which achieved a 4.4% increase; and the transport, storage and communication and real estate and other business services segments, which saw increases in turnover of 2.2% and 1.7% respectively. 

Meanwhile, the total capital expenditure (capex) on property, plant and equipment for the second quarter of 2014 was estimated at R86.32-billion, compared with R106.52-billion for the first quarter of 2014, representing a decrease of 19%.

The largest decrease, at 55.1%, was recorded for electricity, gas and water supply, followed by transport, storage and communication, at 31.7%, community, social and personal services, at 18.1%, and real estate and other business at 5.3%.

Increases in capex were recorded for manufacturing, at 42.2%, mining and quarrying at 7.8%, trade, with capex up 3.6%, and construction with a 3% increase.

PERIODIC LARGE SAMPLE SURVEY
Meanwhile, according to the periodic large sample survey for mining, also released on Monday, which measured the state of the mining industry in 2012, the total income for the mining industry in 2012 was R408-billion, with platinum-group metals (PGMs) having been the largest contributor to the total income at 29%.

Coal and lignite made up a further 23% of the mining industry’s income in 2012, followed by iron-ore at 17% and gold and uranium ore at 16%.

Lehohla further said the total value of mineral sales for 2012 was R377-billion, of which R286-billion related to exports.

Of the R377-billion sold, 24%, or R91-billion, was coal, followed by PGMs at 23%, gold at 18% and iron-ore at 17%.

The major exported minerals were PGMs, at 28%, gold, at 23%, iron-ore at 20% and coal at 18%.

The Stats SA data also showed that, during 2012, the mining industry had the highest profit margin, at 15.8%, compared with other industries such as electricity, gas and water supply with a profit margin of 11.5% and transport with a margin of 6%.

Trade had the lowest profit margin at 2.7%.

Mining, however, was only the fifth-largest contributor to gross domestic product, at 9.6%, while trade was the third-largest contributor at 16.2%.

Meanwhile, the periodic large sample survey for trade had shown that the total income for the trade sector had grown at an average rate of 7.8% a year between 2009 and 2012, with the wholesale industry having made the largest contribution to the total income, at 47%, or R1.11-trillion.

Further, the retail trade industry contributed 27% to the total income, followed by the motor trade industry at 22% and the accommodation and food and beverages industries, which made up 2% of the total income each.

Lehohla pointed out that the analysis of the total income by enterprise size showed that large enterprises earned 67% of the total income in 2012, while medium and small and microenterprises earned 11% and 22% of the total income respectively.

Further, between 2009 and 2012, the fastest-growing industries were the motor trade industry, which showed a yearly growth rate of 11.3%, and the retail trade industry, which grew by 10%, the Stats SA report showed.

According to the reports, in 2012, the mining industry employed 535 000 persons, while the trade sector employed 1.7-million people.