Mixed bag of economic data gives the economy a knock as GDP drops

JOHANNESBURG - A mixed bag of economic data in the third quarter of the year has handed the economy a knock as GDP unexpectedly dropped for the first time this year.

The economy shrunk by 0.3% in the third quarter after a revised marginal growth of 0.3% in the second quarter.

Statistics South Africa (Stats SA) released the latest GDP print on Tuesday.

Agriculture had the toughest time in the third quarter.

This was mainly due to decreased economic activity reported for field crops including maize, soya beans, wheat and sunflower which were heavily affected by drought.

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Adverse weather conditions also hindered the production of subtropical fruits.

The transport industry also weighed down on growth.

Economists polled by Bloomberg expected economic growth of between 0.3% and 0.5% with expectations that a reprieve in load shedding, political certainty and a bump in investor confidence could help drive up growth.

Despite this, some industries still performed better including finance.

Three of the ten manufacturing divisions also reported positive growth rates.