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Cape Town - The Western Cape economy appeared to be in very good condition compared with the other provinces, said Economists.co.za economist Mike Schüssler.
All the sub-indices of Sake24’s Western Cape Barometer for July showed, for a change, year-on-year increases.
The sustained growth in government expenditure and a strong upturn in the agricultural sector, in particular, led to the barometer's growth index rising 6.1% to 121.9 index points.
Among the sub-indices the only declines were month-on-month and on a three-month basis for the construction and electricity sectors.
Although the construction sector was struggling countrywide, with companies like Murray & Roberts complaining that they were not receiving civil contracts, and sales of bitumen and building steel were falling, the construction sector in the Western Cape, in contrast, had not fared too badly.
Schüssler said that the housing market, which had still not fully recovered, was contributing to the construction industry’s difficulties.
The month-on-month and three-month decline in growth in the electricity index could be attributed to the sharp electricity price increases that had come into effect in July.
Construction sector improving
Schüssler believed that the electricity prices were beginning to hurt major power consumers, such as industries, obliging them to introduce power-saving and energy-efficiency measures.
The financial, property and business services index lifted 3.3% year on year to 112.8 index points.
Schüssler said house sales had improved in certain categories like small houses, but were still struggling for medium and large houses. During July, 2 190 houses had been sold in the Western Cape, a considerable improvement on the 1 400 to 1 500 a year ago, but much below the more than 5 000 a month that had been sold during the property boom a few years ago.
Schüssler said the Western Cape’s tourism sector had done well during the World Cup soccer tournament, but could have done better. Most foreign visitors had stayed in Gauteng because most of the matches had been played there.
- Sake24.com
All the sub-indices of Sake24’s Western Cape Barometer for July showed, for a change, year-on-year increases.
The sustained growth in government expenditure and a strong upturn in the agricultural sector, in particular, led to the barometer's growth index rising 6.1% to 121.9 index points.
Among the sub-indices the only declines were month-on-month and on a three-month basis for the construction and electricity sectors.
Although the construction sector was struggling countrywide, with companies like Murray & Roberts complaining that they were not receiving civil contracts, and sales of bitumen and building steel were falling, the construction sector in the Western Cape, in contrast, had not fared too badly.
Schüssler said that the housing market, which had still not fully recovered, was contributing to the construction industry’s difficulties.
The month-on-month and three-month decline in growth in the electricity index could be attributed to the sharp electricity price increases that had come into effect in July.
Construction sector improving
Schüssler believed that the electricity prices were beginning to hurt major power consumers, such as industries, obliging them to introduce power-saving and energy-efficiency measures.
The financial, property and business services index lifted 3.3% year on year to 112.8 index points.
Schüssler said house sales had improved in certain categories like small houses, but were still struggling for medium and large houses. During July, 2 190 houses had been sold in the Western Cape, a considerable improvement on the 1 400 to 1 500 a year ago, but much below the more than 5 000 a month that had been sold during the property boom a few years ago.
Schüssler said the Western Cape’s tourism sector had done well during the World Cup soccer tournament, but could have done better. Most foreign visitors had stayed in Gauteng because most of the matches had been played there.
- Sake24.com
