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Johannesburg - Spending in South Africa expanded at an annualised 2.6% in the third quarter after edging up 0.5% previously, with household consumption offsetting slower growth in government expenditure, the SA Reserve Bank (Sarb) said on Monday.
"Although consumer confidence retreated somewhat in the third quarter of 2014, it still remained marginally above the low levels recorded in the second half of 2013," Sarb said in its quarterly bulletin.
The deficit on South Africa's current account narrowed to 6.0% of GDP in the third quarter of the year from a revised shortfall of 6.3% previously, the central bank said on Monday.
Economists surveyed by Reuters had expected a 5.8% gap.
In its latest quarterly bulletin, Sarb said the value of exports picked up moderately in the third quarter, helping narrow the trade deficit, after contracting sharply in the previous three months as wage strikes took their toll.
However, the improved trade balance was offset by higher net service, income and current transfer payments to the rest of the world.
Net portfolio and other investment flows fully financed the overall current account gap in the quarter, the bank added.
