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Johannesburg - The Gauteng private sector economy is doing well, as is evident from Sake24 and BoE Private Clients’ Gauteng Barometer for December. It was 1.4% up month-on-month, 1.7% higher than three months ago and more than 5% stronger year-on-year (y/y).
Consumers, in particular, benefited with the trade index 3.6% stronger than in November and 10.9% up on a year ago.
Gauteng consumers were slightly better off than their counterparts in the rest of the country, according to Mike Schüssler, who compiled the indices.
With the amount of time they tend to spend on the road, people in Gauteng buy cars and their spending on fuel was 12% higher than in November and 10% more y/y.
As far as general retailers were concerned, Schüssler was pleased to see that spending had been driven by a greater volume of durable item sales. Wholesale sales were also stronger, which meant that retailers had more confidence in the economy and were busy restocking.
The consumers’ favourable position was reflected in the economic stress index, an indication of how difficult it was to do business in the province. This index was up compared with the previous month, but Schüssler said he was not concerned as it had a declining trend. Factors enablling this were lower interest rates, low indebtedness and relatively less unemployment.
Unemployment was a big problem in all provinces, but in Gauteng the figure rose by only 4% over a year.
The good news was that the struggling property sector was beginning to lift its head. The number of properties being sold was positive y/y, so a turnaround was indicated.
Schüssler emphasised that the sector was still in a recovery phase, coming off a low base.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
