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Johannesburg - Gauteng’s economy is growing, but jobs remain scarce.
In February this year the Sake24 and BoE Private Clients' Gauteng Barometer, which measures economic activity in the local economy, was 9.8% up on February 2010.
At 108.2 points the February index was 0.3% down from January, when it had stood at 108.6 points. Three months ago, in November 2010, the index reflected 98.6 points. It has therefore since risen 9.8%.
Gauteng looks good. On the growth side it was at its best level since 2007, said the compiler of the barometer, Mike Schüssler of Economists.co.za.
The financial sector, the manufacturing sector and the construction industry gave the Gauteng economy a boost in February. The financial sector was the biggest in Gauteng's economy, growing 1.3% from January to February. It was also 6.2% higher than in February last year.
The manufacturing sector was 2.1% up on February 2010, but Schüssler worried that it was beginning to lose steam. From January to February the sector rose only 0.1% – but was still 4.3% up on three months ago.
The construction index was still 9.8% down on a year ago, but lifted 0.7% from January to February. Schüssler did not consider this rise significant.
He believed the construction industry would start to improve only in two or three months' time, or perhaps even next year.
He said the construction industry's poor performance was to a large extent normal. Last year construction companies completed their projects before the Soccer World Cup, so it's not surprising that the industry is now taking a breather.
The index for transport, storage and communication fell 2% from January to February, but was still 17.9% higher than a year ago. Nevertheless, the transport industry continued to make an important contribution to the Gauteng economy, Schüssler reckoned.
The barometer’s total trade index fell 6.4% from January to February, but remained 8.4% up on a year ago. This index was compiled from retail, wholesale, petrol and vehicle sales, as well as activity in the entertainment industry.
The retail sales index was still 2.8% up year-on-year, but fell 30.8% from January to February.
Vehicle sales were 28.1% higher than in February 2010 and rose 3.7% after January.
Schüssler attributed consumer appetite for buying to lower inflation and lower interest rates.
The barometer for economic stress levels in Gauteng remained unchanged from January to February, and was therefore 1.8% down compared to a year ago. This measure was compiled from data on inflation, unemployment and the number of civil judgments for debt.
The number of civil judgments was 4% down, a good sign because it showed consumers were experiencing less pressure. But the problem was that jobs were still not being created, 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.
In February this year the Sake24 and BoE Private Clients' Gauteng Barometer, which measures economic activity in the local economy, was 9.8% up on February 2010.
At 108.2 points the February index was 0.3% down from January, when it had stood at 108.6 points. Three months ago, in November 2010, the index reflected 98.6 points. It has therefore since risen 9.8%.
Gauteng looks good. On the growth side it was at its best level since 2007, said the compiler of the barometer, Mike Schüssler of Economists.co.za.
The financial sector, the manufacturing sector and the construction industry gave the Gauteng economy a boost in February. The financial sector was the biggest in Gauteng's economy, growing 1.3% from January to February. It was also 6.2% higher than in February last year.
The manufacturing sector was 2.1% up on February 2010, but Schüssler worried that it was beginning to lose steam. From January to February the sector rose only 0.1% – but was still 4.3% up on three months ago.
The construction index was still 9.8% down on a year ago, but lifted 0.7% from January to February. Schüssler did not consider this rise significant.
He believed the construction industry would start to improve only in two or three months' time, or perhaps even next year.
He said the construction industry's poor performance was to a large extent normal. Last year construction companies completed their projects before the Soccer World Cup, so it's not surprising that the industry is now taking a breather.
The index for transport, storage and communication fell 2% from January to February, but was still 17.9% higher than a year ago. Nevertheless, the transport industry continued to make an important contribution to the Gauteng economy, Schüssler reckoned.
The barometer’s total trade index fell 6.4% from January to February, but remained 8.4% up on a year ago. This index was compiled from retail, wholesale, petrol and vehicle sales, as well as activity in the entertainment industry.
The retail sales index was still 2.8% up year-on-year, but fell 30.8% from January to February.
Vehicle sales were 28.1% higher than in February 2010 and rose 3.7% after January.
Schüssler attributed consumer appetite for buying to lower inflation and lower interest rates.
The barometer for economic stress levels in Gauteng remained unchanged from January to February, and was therefore 1.8% down compared to a year ago. This measure was compiled from data on inflation, unemployment and the number of civil judgments for debt.
The number of civil judgments was 4% down, a good sign because it showed consumers were experiencing less pressure. But the problem was that jobs were still not being created, 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.
