South Africa’s economy has seen a 0.5% rise in gross domestic product (GDP) in the third quarter, between July and September.
Statistics SA (StatsSA) revealed that nine out of 10 industries on the production side of the economy recording positive results.
Mining and quarrying
Mining and quarrying were the strongest performers, growing by 2.3%. The increase was mainly driven by platinum group metals. And it is supported by manganese ore, coal, chromium ore and copper.
Although iron ore, diamonds, nickel and gold declined, these drops were not enough to pull the sector down.
“Agriculture carried over its positive momentum, recording its fourth consecutive increase. The 1,1% rise in the third quarter was underpinned by stronger production of field crops, horticulture and animal products.
“The trade, catering and accommodation industry also registered its fourth consecutive quarter of growth. Positive gains were recorded across the board, with stronger wholesale trade, retail trade, motor trade, accommodation and food & beverages,” reads the statement.
Construction managed to return to positive territory after three quarters of decline. The sector recorded a small rise of 0,1%. This is linked to growth in non-residential buildings and construction works.
Electricity, gas, water sectors decline
The only industry to shrink was electricity, gas and water, which fell by 2,5%. StatsSA said the decline was caused by lower electricity production and usage. Water consumption was also weak.
General government activity increased. This was supported by higher employment in national and provincial government, as well as extra-budgetary institutions.
Transport, storage and communication grew by 0,5%. This was lifted by a rise in air transport, communication services and transport support activities.
On the expenditure side, the economy was supported by household consumption, stronger fixed investment, higher exports and an increase in government spending.
Household consumption
Household consumption rose for the sixth quarter in a row, increasing by 0,7%. Transport was the biggest driver, mainly because of a rise in new vehicle sales. Spending on clothing and footwear, as well as miscellaneous goods and services, declined.
Gross fixed capital formation grew by 1,6% after three quarterly declines. The improvement was largely due to higher investment in transport equipment. Increased spending on ICT equipment and software in the “other assets” category also made a strong contribution.
Exports grew by 0,7%, lifted mostly by vegetable products and mineral products. Imports rose by 2,2%, influenced by higher trade in machinery and electrical equipment. Also in mineral products, textiles and textile articles, and animal and vegetable fats and oils.
