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Bloemfontein - In February the KwaZulu-Natal barometer rose 14.8%, compared with the same period last year.
This means that economic activity in the province is again at the high level it reached in March 2006.
The biggest rise was in the index measuring government expenditure and communications, which was 39.3% up.
Government expenditure stimulates the economy in the short term, but such massive growth is not sustainable in the long run. It can be expected to slow down again, said Mike Schüssler of Economists.co.za, the compiler of the Sake24 and BoE Private Clients' KwaZulu-Natal Barometer.
He expressed satisfaction at the province's economic performance and pointed out that it has taken place over a broad front.
The other star performer was the transport index, which had a 16% better showing in February than a year ago. Activity in the province’s ports increased a mere 3.7%, but Schüssler points out that this growth comes off a high base.
Land transport was up 3.6% and the number of passengers passing through the province’s airports saw a healthy 13.3% spike.
It appears that the province’s trade index (9% up) also recovered well from its January 2010 low. The good performance was boosted by vehicle sales (27.5% up year-on-year) while retail improved 5.8%, wholesale 8.1% and petrol sales 8%.
The province’s agricultural sector, which has been tempered by difficult weather conditions and poorer global prices for sugar in recent years, is still trying to find purchase and in February 4.9% fared better than a year ago. In the same period the sugarcane index was 14% up.
The construction sector is unfortunately still under the cosh (down 23%), as it is in the rest of the country. But it seems that this volatile index is starting to recover after lifting 4.4% over the past three months.
- 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.
This means that economic activity in the province is again at the high level it reached in March 2006.
The biggest rise was in the index measuring government expenditure and communications, which was 39.3% up.
Government expenditure stimulates the economy in the short term, but such massive growth is not sustainable in the long run. It can be expected to slow down again, said Mike Schüssler of Economists.co.za, the compiler of the Sake24 and BoE Private Clients' KwaZulu-Natal Barometer.
He expressed satisfaction at the province's economic performance and pointed out that it has taken place over a broad front.
The other star performer was the transport index, which had a 16% better showing in February than a year ago. Activity in the province’s ports increased a mere 3.7%, but Schüssler points out that this growth comes off a high base.
Land transport was up 3.6% and the number of passengers passing through the province’s airports saw a healthy 13.3% spike.
It appears that the province’s trade index (9% up) also recovered well from its January 2010 low. The good performance was boosted by vehicle sales (27.5% up year-on-year) while retail improved 5.8%, wholesale 8.1% and petrol sales 8%.
The province’s agricultural sector, which has been tempered by difficult weather conditions and poorer global prices for sugar in recent years, is still trying to find purchase and in February 4.9% fared better than a year ago. In the same period the sugarcane index was 14% up.
The construction sector is unfortunately still under the cosh (down 23%), as it is in the rest of the country. But it seems that this volatile index is starting to recover after lifting 4.4% over the past three months.
- 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.
