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Johannesburg - Gauteng’s economy is on the move.
The province's growth has been widespread, but has been driven in particular by the transport industry.
According to the Sake24 and BoE Private Clients' Gauteng Barometer, the province’s growth in January was 5.6% up year-on-year (y/y).
The barometer’s compiler, Economists.co.za economist Mike Schüssler, said Gauteng’s transport industry had performed better than expected.
The barometer’s transport, storage and communication index rose 16% y/y in January.
This index is compiled from data on air and land transport in Gauteng, as well as the number of cellphone and landline calls made across the entire country.
There are many stories illustrating how well the transport industry is doing and the figures confirm this, said Schüssler.
Petrol sales, for example, showed that Gauteng’s Rogers had been very busy, he said.
Gauteng’s petrol consumption in December 2010 was 9.5% higher y/y than in December 2009.
The number of passengers disembarking from aircraft in Johannesburg in January was 10.4% higher than that in January 2010.
Schüssler said that Gauteng was transporting goods and people to other provinces.
There are also many business executives from the rest of Africa who come to South Africa to buy provisions and do business, he said.
Gauteng’s economic recovery, and the transport industry's contribution to it, were also reflected in the barometer's trade index. This index was 8.6% up y/y and consisted of vehicle sales, petrol consumption, hotel occupancy and both the retail and wholesale sectors.
The consumer has returned to the economy. One can see it in car and furniture sales, as well as in retail.
Furniture sales include electronics such as television and hi-fi sets and there is a consumer culture of the bigger the better in respect of these items, Schüssler said.
Furniture sales have risen 6% over the past year and vehicle sales 28.5%.
According to the barometer, Gauteng’s construction industry is still struggling to gain momentum.
Construction in the province declined 0.04% between December and January, but is still 10% down on a year ago. Schüssler said it was natural for this industry to recover more slowly than the rest of the economy.
Construction is a lagging indicator, he pointed out. It takes a long time for a business person or homeowner to regain enough confidence in the economy after a recession to start building again, and then even longer before the construction is approved and completed.
Schüssler reckons that improvement in the construction industry will probably be seen only after a couple of quarters.
The barometer’s economic stress index, which measures pressure on the Gauteng economy, declined 0.2%.
The stress index fell, but this was not because hiring in Gauteng had improved. It meant prices in the province were still rising, but not as quickly as previously, said Schüssler.
- Sake24
The province's growth has been widespread, but has been driven in particular by the transport industry.
According to the Sake24 and BoE Private Clients' Gauteng Barometer, the province’s growth in January was 5.6% up year-on-year (y/y).
The barometer’s compiler, Economists.co.za economist Mike Schüssler, said Gauteng’s transport industry had performed better than expected.
The barometer’s transport, storage and communication index rose 16% y/y in January.
This index is compiled from data on air and land transport in Gauteng, as well as the number of cellphone and landline calls made across the entire country.
There are many stories illustrating how well the transport industry is doing and the figures confirm this, said Schüssler.
Petrol sales, for example, showed that Gauteng’s Rogers had been very busy, he said.
Gauteng’s petrol consumption in December 2010 was 9.5% higher y/y than in December 2009.
The number of passengers disembarking from aircraft in Johannesburg in January was 10.4% higher than that in January 2010.
Schüssler said that Gauteng was transporting goods and people to other provinces.
There are also many business executives from the rest of Africa who come to South Africa to buy provisions and do business, he said.
Gauteng’s economic recovery, and the transport industry's contribution to it, were also reflected in the barometer's trade index. This index was 8.6% up y/y and consisted of vehicle sales, petrol consumption, hotel occupancy and both the retail and wholesale sectors.
The consumer has returned to the economy. One can see it in car and furniture sales, as well as in retail.
Furniture sales include electronics such as television and hi-fi sets and there is a consumer culture of the bigger the better in respect of these items, Schüssler said.
Furniture sales have risen 6% over the past year and vehicle sales 28.5%.
According to the barometer, Gauteng’s construction industry is still struggling to gain momentum.
Construction in the province declined 0.04% between December and January, but is still 10% down on a year ago. Schüssler said it was natural for this industry to recover more slowly than the rest of the economy.
Construction is a lagging indicator, he pointed out. It takes a long time for a business person or homeowner to regain enough confidence in the economy after a recession to start building again, and then even longer before the construction is approved and completed.
Schüssler reckons that improvement in the construction industry will probably be seen only after a couple of quarters.
The barometer’s economic stress index, which measures pressure on the Gauteng economy, declined 0.2%.
The stress index fell, but this was not because hiring in Gauteng had improved. It meant prices in the province were still rising, but not as quickly as previously, said Schüssler.
- 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.
