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Household consumption expenditure June 2018 vs June 2017
Date: 3 October 2018 Category: Economics |
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We take a look at household consumption expenditure data as published by Statistics South Africa and compare expenditure on various categories in the 2nd quarter of 2018 to the expenditure of the 2nd quarter of 2017. How has consumer spending patterns changed over the last 12 months? What are consumers spending more or less money on than they did 12 months ago.
We take a look below |
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Household spending changes from June 2017 to June 2018
The graphic below takes a look at the total income earned by various enterprise sizes for the last two quarters, and while it shows that income earned by enterprises in South Africa increased in the June 2018 quarter compared to the March 2018 quarter, the growth rate is very very low.
So as the graphic shows, looking at the total expenditure (after the effects of inflation has been removed) South African households spent less on both Food and non alcoholic beverages as well as Alcoholic beverages and Tobacco than 12 months ago. Spending on food and non alcoholic beverages declined by -0.88% while spending on Alcoholic beverages and Tobacco declined by a substantial -3.99% compared to a year ago. Food and non alcoholic beverages spending declined by R770million compared to a year ago, while spending on Alcoholic beverages and Tobacco declined by around R840million
All other spending categories showed mild to moderate growth over the last 12 months With the biggest percentage increase (and Rand value spent) seen in the Furnishings, household equipment, maintenance category. Seems consumers are spending more on goods and service to maintain and upgrade their homes. In total R1.8 billion more was spent on this category in the 2nd quarter of 2018 compared to the 2nd quarter of 2017.
All other spending categories showed mild to moderate growth over the last 12 months With the biggest percentage increase (and Rand value spent) seen in the Furnishings, household equipment, maintenance category. Seems consumers are spending more on goods and service to maintain and upgrade their homes. In total R1.8 billion more was spent on this category in the 2nd quarter of 2018 compared to the 2nd quarter of 2017.
The Health category also saw spending up around R1.6 billion compared to a year ago. This is largely due to the increases implemented in the contribution of medical aid schemes. Miscellaneous goods and services also showed a strong increase of 2.4% or R1.4 billion compared to June 2018. All other forms of insurance such as vehicle, household and household content insurance is contained within this category. Increases in this category is largely driven by premium increases of insurance companies.
In summary the total value of spending by household spending in June 2018 amounted to the following:
In summary the total value of spending by household spending in June 2018 amounted to the following:
- Food and non-alcohol beverages: R 86 876 072 614
- Alcohol beverages, tobacco and narcotics: R 20 221 293 314
- Clothing and footwear: R 25 908 914 843
- Housing, water, electricity, gas and other fuels: R 67 932 757 173
- Furnishings, household equipment, maintenance: R 38 657 275 925
- Health: R 35 787 806 918
- Transport: R 68 491 067 412
- Communication: R 18 905 064 373
- Recreation and culture: R 24 293 194 304
- Education: R 14 859 678 802
- Restaurants and hotels: R 11 398 155 010
- Miscellaneous goods and services: R 59 890 637 284
- Total Household Spending: R 473 221 917 972