SA economy expands by 0.6% in second quarter
South Africa's economy expanded in the second quarter of the year.
GDP grew by 0.6%, outpacing forecasts.
Bokang Vumbukani-Lepolesa from Stats SA says the main drivers were the manufacturing and finance industries.
"Household consumption decreased in the second quarter as consumers cut back on a variety of goods and services. Despite the overall decline, households continued to increase their spending on restaurants and hotels, representing a seventh consecutive quarter of growth for this category.
"Manufacturing production expanded by 2,2%, mainly pushed higher by petroleum, chemical products, rubber & plastic products. Manufacturers in metals, metal products, machinery & equipment also recorded a good quarter, driven in part by increased demand for crude steel. Increased investment in South Africa’s automotive sector helped lift the production of transport equipment and motor vehicles.
"The finance industry edged higher by 0,7%, boosted by financial intermediation, insurance and real estate services."
But not all industries showed good growth rates.
"Not all industries had a good second quarter. After 18 months of consistent growth, the transport, storage & communication industry stumbled, declining by 1,9%. Transport support services were lackluster and there were declines in land freight and road passenger transport.
"The trade industry was down on the back of weaker retail and wholesale figures. The overall decline was partially offset by increased activities in the motor trade, tourist accommodation and restaurant, catering & fast-food sectors.
"After holding its head above water for nine months, the construction industry lost steam in the second quarter. A decline in economic activity related to non-residential and residential buildings pulled the industry lower. There was a small uptick in construction works, but this was not enough to lift the industry into positive territory."
