Growth in spending slowed to 1.9% in the third quarter of 2013, the Reserve Bank said on Tuesday.
“Growth in aggregate real gross domestic expenditure moderated from an annualised rate of 2.7% in the second quarter of 2013, to 1.9% in the third quarter.
“This was the net result of a slower pace of increase in real final consumption expenditure by households and general government,” said the bank in its December Quarterly Bulletin.
According to the bulletin, growth in real disposable income of households moderated from an annualised rate of 2.8% in the second quarter of 2013 to 2.1% in the third quarter. The slower pace of increase could partly be attributed to higher inflation and lower wage payments arising from strike activity.
Additionally, the level of indebtedness of households edged lower in the third quarter of the year.
“Household debt as a percentage of disposable income consequently decreased from 75.8% in the second quarter of 2013 to 75.5% in the third quarter,” noted the bulletin.
The cost of servicing debt as a percentage of disposable income remained at 7.7% from the first to the third quarter of 2013. – SAnews.gov.za
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