SA’s state, household spending rises
Mar 19 2012 10:34 Reuters
Pretoria – Spending growth in South Africa’s economy quickened in the fourth quarter of 2011, helped by increased spending by both households and the government, the central bank said on Monday.
In its March Quarterly Bulletin, the South African Reserve Bank said growth in aggregate real gross domestic expenditure accelerated to an annualised 5.1% in the fourth quarter from 4.8% in the second quarter.
Household expenditure was up 4.6% in the last three months of the year, compared with a 3.8% rise in the third quarter.
“This faster pace of spending was consistent with a further increase in disposable income of households and positive wealth effects,” the central bank said.
It said the growth in spending by households was seen across all categories, with spending on services in particular regaining momentum.
The ratio of household debt to disposable income inched lower to 74.6% in the fourth quarter, from 75.6% in the third.