Publications
Partners
Durban - The KZN barometer, an indicator that measures the economic performance of the province, increased for the first time in 11 months in February.
The latest barometer, as compiled by Economists.co.za economist Mike Schussler, was boosted by low fuel prices at that time, which helped to lower inflation and boost consumer confidence.
There have, however, been warnings from economists that with the fuel price rising again and the anticipated increase in agriculture product prices due to the drought, inflation may increase soon.
The barometer increased 0,9% in February compared with the same month a year before, although it was marginally down by 0,3% month on month.
It was also boosted by “strong growth in government expenditure”, a statement said.
Interestingly, the transport and communication index in the barometer reported its ninth consecutive month of strong double digit growth — the 18,2% growth was slower than the previous month’s 25%.
A spokesperson for economists.co.za said this index has been buoyed by statistics on unique computer browsers, or more simply, people using computers in the province.
The index that measures national, provincial and municipal government spending and which makes up 14,4% of the total barometer, had increased six percent year on year in February.
It was the biggest increase in the government spending in three years, although Shussler warned this was partly due to a revision of the data.
March is also the end of the financial year for municipalities and they often adopt a “use it or lose it” principle on their budgets before year-end.
The province’s agriculture index fell 2,8% year on year, reflecting the national decline in activity in the sector generally due to drought.
Field crop production fell 1,1% while meat production was down 23%.
Manufacturing had a slow start to 2015 and the manufacturing index in the barometer fell 0,7% year on year after growing only one percent the previous month.
Growth in clothing, textiles and footwear was most likely due to increased demand for school clothes and shoes at the start of the year.
The index fell by 3,4% year on year in February and was down 5,4% month on month and 7,7% quarter on quarter. The decline in construction is national, and not limited to KZN.
The index for the finance, real estate and business services sector grew 9,6% year on year, 1,6% month on month and 6,3% quarter on quarter
