{"id":17622,"date":"2024-09-03T11:31:13","date_gmt":"2024-09-03T09:31:13","guid":{"rendered":"https:\/\/www.statssa.gov.za\/?p=17622"},"modified":"2024-09-03T13:23:37","modified_gmt":"2024-09-03T11:23:37","slug":"sa-economy-grows-in-the-second-quarter","status":"publish","type":"post","link":"https:\/\/www.statssa.gov.za\/?p=17622","title":{"rendered":"SA economy grows in the second quarter"},"content":{"rendered":"

The South African economy strengthened by 0,4%1<\/sup> in the second quarter (April\u2013June) of 2024. The finance, manufacturing, trade, and electricity, gas & water supply industries drove most of the economy\u2019s momentum on the production (supply) side. On the expenditure (demand) side, household consumption, government consumption and a build-up in inventories contributed favourably to growth.<\/p>\n

Seven industries record gains<\/strong><\/p>\n

On the production side of the economy, the finance, real estate & business services industry made the biggest impact, adding 0,3 of a percentage point to gross domestic product (GDP) growth (Figure\u00a01).<\/p>\n

\"image1\"<\/a><\/p>\n

Other notable contributors include manufacturing, trade, and electricity, gas & water. Manufacturing turned positive after shrinking in the first quarter, rising by 1,1% in the second quarter. Production was mainly driven by motor vehicles & transport equipment and food & beverages.<\/p>\n

Buoyant economic activity in wholesale, retail and tourist accommodation pushed the trade, catering & accommodation industry higher by 1,2%.<\/p>\n

The country experienced no load shedding in the second quarter,2 <\/sup>which helped the electricity, gas & water supply industry. It grew by 3,1%, driven by increased electricity generation and water distribution. If we ignore the topsy-turvy economic environment caused by the pandemic in 2020, the 3,1% growth rate represents the sharpest increase since the third quarter of 2008 (also 3,1%).<\/p>\n

The construction industry showed some growth after a year of decline, edging marginally higher in the second quarter. The rise was driven by economic activity related to residential and non-residential buildings. However, there was a slowdown in construction works.<\/p>\n

Three industries contracted in the second quarter. Transport, storage & communication was the largest negative contributor, declining by 2,2% and dragging GDP growth down by 0,2 of a percentage point. Strike action and a fall in freight volumes contributed to the industry\u2019s poor performance.<\/p>\n

Agriculture, forestry & fishing faced headwinds, including lower than expected rainfall in some parts of the country (affecting maize and soya bean production), heavy rain in KwaZulu-Natal (affecting sugar cane production), and foot-and-mouth disease (affecting sheep and pork production).<\/p>\n

Mining recorded a second consecutive decline. The industry\u2019s poor showing in the second quarter was associated with decreased production of iron ore, coal, diamonds and gold.<\/p>\n

Household spending a notable contributor<\/strong><\/p>\n

On the expenditure (demand) side of the economy, rising consumer confidence saw household consumption expenditure strengthen by 1,4%. Consumers increased their spending across most product categories (Figure\u00a02). The miscellaneous goods & services product group was the largest positive contributor, driven mainly by increased spending on insurance.<\/p>\n

\"image2\"<\/a><\/p>\n

Household consumption was the largest positive contributor to overall growth on the expenditure side of the economy (Figure\u00a03). Government consumption was also positive, helped by a rise in purchases of goods and services and an increase in compensation of civil servants.<\/p>\n

\"image3\"<\/a><\/p>\n

Imports rose by 1,7%. This was on the back of increased trade in vehicles and transport equipment (excluding large aircraft), vegetable products, mineral products, and textiles and textile articles.<\/p>\n

There was a R9,6\u00a0billion build-up in inventories in the second quarter. The supply of goods in the economy exceeded demand, prompting the trade, manufacturing and finance industries to place newly produced goods into inventories.<\/p>\n

Gross fixed capital formation, which includes investments in infrastructure and other fixed assets, disappointed for a fourth consecutive quarter. The 1,4% decline in the second quarter was due to lower investments in computer software, biological assets, construction works, machinery & other equipment, and transport equipment.<\/p>\n

Exports were lower because of weaker trade in vegetable products, mineral products, vehicles & transport equipment (excluding large aircraft), and base metals & articles of base metals.<\/p>\n

For more information, download the latest GDP release, media presentation and Excel files here<\/a>.<\/p>\n

 <\/p>\n

1 <\/sup>Unless otherwise specified, growth rates quoted in the article are quarter-on-quarter, seasonally adjusted and in real (volume) terms (constant 2015 prices).<\/p>\n

2 <\/sup>The Outlier & EskomSePush (access loadshedding data here<\/a>).<\/p>\n

Similar articles are available on the Stats SA website and can be accessed here<\/a>.<\/p>\n

For a monthly overview of economic indicators and infographics, catch the latest edition of the Stats Biz newsletter here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The South African economy strengthened by 0,4%1 in the second quarter (April\u2013June) of 2024. The finance, manufacturing, trade, and electricity, gas & water supply industries drove most of the economy\u2019s momentum on the production (supply) side. On the expenditure (demand) side, household consumption, government consumption and a build-up in inventories contributed favourably to growth. Seven   read more »<\/a><\/p>\n

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