LOCAL: What are South African households spending more on currently?
Stats SA released some key information for South Africans on Tuesday and one of the key insights revealed that South Africa's economy grew by 1.1% in the first quarter of 2021.
When we think about budget speeches and financial updates on the statistics in terms of South Africa's economical state of affairs, somehow it gets us feeling sweaty-palmed and a bit nervous...
We're not sure what the reason behind it all is exactly, but perhaps it's the reality of it all. The factual side of things doesn't paint a positive picture for us usually and it's not always good news, therefore it can be a stressful.
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This new report focused on what South African households have been devoting their income to.
The data shows that household final consumption expenditure increased at an annualised rate of 4.7% in the first quarter – driven largely by miscellaneous goods and services, clothing and footwear, and furnishings.
Notable items in the ‘miscellaneous goods & services’ category that recorded growth include insurance-related products, as well as retail goods such as electrical appliances, jewellery and other personal effects.
According to Maarten Ackerman, chief economist at Citadel, the good news is that the patterns in the report have revealed that many households are getting back to normal since the pandemic left us feeling a bit financially congested.
He also said: "The data indicates that the majority of money is being spent on clothing, footwear, furniture, services, etc; however there has been a decline in spending at restaurants and hotels."
We guess that that's a good indication that people are following the restrictions and being COVID-19 aware.
What have you been focusing your funds on? Do you feel like the report is a true indicator of your household spend?
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