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Bloemfontein - Agriculture and mining are doing better, but other sectors of the economy took a breather in July.
This is reflected in the latest provincial barometers, which this month include an additional province, Limpopo, in the survey.
This means that activity levels in six of the country’s provincial economies are now being watched, and the barometers give a good idea of economic changes at grassroots level.
In July Gauteng (7.7% up on a year ago) performed best, with the Western Cape (0.3% up) showing the smallest improvement.
In the quarter to July the inland provinces experienced a good rise in the mining index, but this may be only a temporary resurgence, warns Mike Schüssler, who compiles the provincial barometers.
“It's unlikely that the upturn will persist because the current labour unrest in the platinum sector is spreading,” said Schüssler.
The economy of the Western Cape – unlike that of the provinces with a heavy dependence on mining – did not receive a bonus from this sector in July and reflected the general stagnation in the national economy.
Schüssler said the coastal provinces were unusually the ones to decline in July, and there is pressure on these provinces’ financial services, property and manufacturing sectors.
The only exception is the motor manufacturing in the Eastern Cape, which lifted that province’s manufacturing index 5.6% year-on-year (y/y) – the biggest rise of all six provinces.
Exactly how bad things are for the manufacturing sector becomes clear if one notes that electricity consumption in July fell in four of the six provinces, with the Free State (8.5% y/y) heading the pack.
“These declines are not only owing to consumers reducing expensive electricity consumption, but also to factories and mines reducing production,” said Schüssler.
The agricultural indices for the Free State (31.2% up on a year ago), Limpopo (7.1% up) and the Eastern Cape (7.6% up) are experiencing a run thanks to higher grain prices and, according to Schüssler, prospects look good for continued growth over the next few months.
In all six of the provinces the trade index was down in the quarter to July, mainly because of a sharp decline in petrol sales.
But this can be attributed to consumers waiting for the anticipated reduction in the petrol price at that stage before deciding to buy fuel.
“The consumer is under pressure, but he’s not out of the picture. This is evident from national motor sales, which are still better than a year ago.”
- Sake24
This is reflected in the latest provincial barometers, which this month include an additional province, Limpopo, in the survey.
This means that activity levels in six of the country’s provincial economies are now being watched, and the barometers give a good idea of economic changes at grassroots level.
In July Gauteng (7.7% up on a year ago) performed best, with the Western Cape (0.3% up) showing the smallest improvement.
In the quarter to July the inland provinces experienced a good rise in the mining index, but this may be only a temporary resurgence, warns Mike Schüssler, who compiles the provincial barometers.
“It's unlikely that the upturn will persist because the current labour unrest in the platinum sector is spreading,” said Schüssler.
The economy of the Western Cape – unlike that of the provinces with a heavy dependence on mining – did not receive a bonus from this sector in July and reflected the general stagnation in the national economy.
Schüssler said the coastal provinces were unusually the ones to decline in July, and there is pressure on these provinces’ financial services, property and manufacturing sectors.
The only exception is the motor manufacturing in the Eastern Cape, which lifted that province’s manufacturing index 5.6% year-on-year (y/y) – the biggest rise of all six provinces.
Exactly how bad things are for the manufacturing sector becomes clear if one notes that electricity consumption in July fell in four of the six provinces, with the Free State (8.5% y/y) heading the pack.
“These declines are not only owing to consumers reducing expensive electricity consumption, but also to factories and mines reducing production,” said Schüssler.
The agricultural indices for the Free State (31.2% up on a year ago), Limpopo (7.1% up) and the Eastern Cape (7.6% up) are experiencing a run thanks to higher grain prices and, according to Schüssler, prospects look good for continued growth over the next few months.
In all six of the provinces the trade index was down in the quarter to July, mainly because of a sharp decline in petrol sales.
But this can be attributed to consumers waiting for the anticipated reduction in the petrol price at that stage before deciding to buy fuel.
“The consumer is under pressure, but he’s not out of the picture. This is evident from national motor sales, which are still better than a year ago.”
- Sake24
For more business news in Afrikaans, go to Sake24.com.
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