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The Sake24 Gauteng Barometer declined by 1.1% in the three months to the end of August. The year-on-year (y/y) figures are nevertheless 7.1% higher.
The growth index for this barometer also lost ground and slipped by 0.6% for August.
Mike Schüssler of economists.co.za, compiler of the barometer, said the Gauteng economy grew somewhat in the three months to end August, but on the whole it has lost speed.
“Economic growth is declining in spite of a reduction in economic stress.”
The construction index dropped by 5.9% in the three months to August. Schüssler said performance in this sector reflects how the Gauteng economy as a whole is currently just treading water.
Gold mines showed recovery in August in the wake of strikes in the first term. This boosted the mining index for the previous three months by 9.7%.
However, current strikes are once again putting a damper on production in the mining sector.
The manufacturing index fell by 1% in the three months to August and figures were only 3.5% higher than a year ago.
Schüssler said vehicle sales and food producers are still doing well in Gauteng, whereas furniture and textile production is suffering.
Steel producers, who rely mainly on mine orders, are also struggling, he said.
The financial services index, one of the largest sectors in Gauteng, declined by 2.5% in the three months up to August, and in August itself by 0.3%.
“The effect of uncertainty overseas is also trickling through to South Africa, and not only in terms of export demand.”
The Gauteng trade index, which comprises vehicle, fuel, retail and wholesale sales, also declined in the three months to August. It shrank by 2.2% for this period, but the figure is still 10.5% higher than for last year.
July retail sales in the province (the latest available figures) were only 1.5% higher y/y.
Petrol price increases depressed y/y fuel sales for July by 3.6%.
This was the eighth consecutive month of lower fuel sales in Gauteng, despite a continual rise in new vehicle sales.
Vehicle sales in August were 23.4% higher than a year before. Schüssler surmises that lower interest rates have given consumers enough confidence to continue buying new vehicles.
But they are still wary of buying property, with residential sales in Gauteng going down for the second consecutive month.
The Gauteng economic stess index declined by 0.8% in August since the interest rate reduction has given consumers a little more breathing space.
The number of passengers passing through the O R Tambo Airport was 1.7% lower in August compared to the previous year.
Schüssler said this indicates that consumers are feeling the pinch and have had to scale down on holiday plans.
The inflation rate for Gauteng was 4.8% in August and thus somewhat lower than the average inflation rate for the country.
The province still
managed to create job opportunities, and unemployment figures slid to
25.4%, compared to 28.2% in August last year.
- 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.
