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In this article we take a look at the total value of household spending in South Africa on Durable Goods, Semi-durable goods, non-durable goods as well as on services. We also take a look at the growth rates of spending on these goods. Has households started spending less on specific type of goods compared to others? We take a look.
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So what do households spend the most amount of money on?
Before we answer the question above lets take a look at what is covered on the various spending categories.
So now that we have a better idea of what is covered within each of the categories, lets take a look at the amount of money spent by South African households on the various spending categories.
- Durable Goods: This tends to be furniture, household appliances, motor vehicles and computers and related equipment. It also includes recreational and entertainment goods (sports equipment etc)
- Semi-durable Goods: Clothing and footwear, household furnishings (pillows, drapes, curtains etc), motor vehicle parts such as tyres
- Non-durable Goods: Food, beverages and tobacco, household fuel, power and water, fast moving consumer goods such as personal care items (toothpaste, body lotions, deodorant etc)
- Services: Rent, household services including domestic workers, medical services, transport and communication services, entertainment services, miscellaneous services (this includes insurance of all types, vehicle, household content and building insurance)
So now that we have a better idea of what is covered within each of the categories, lets take a look at the amount of money spent by South African households on the various spending categories.
So based on the data released by Statistics South Africa relating to household expenditure, it is clear that the bulk of household spending goes towards services. With it reaching R845 billion in 2018 (or 43.7% of total household spending in 2018). According to Stats SA's consumer price index, spending on services used by households amounts to 51.3%. So while there is a discrepancy between what Stats SA's CPI and its GDP release is saying regarding spending on services as a percentage of total household spending. It should be noted the two aim to measure different things and is made up from vastly different data sources. But both are in agreement that services makes up a very large chunk of household spending.
The second biggest spending category for South African households is Non-durable goods. This is largely made up by food, beverages and tobacco, with total spending on this category coming in at R711.6 billion in 2018. Far smaller spending categories are Durable and semi-durable goods with the two making up 9.9% and 9.6% respectively of total household spending during 2018.
The summary below shows the total Rand value spent by South African households on various expenditure categories as well as the percentage this makes up of total household spending during 2018.
Services: R845.9 billion (43.6%)
In 2018 total household spending amounted to R1.937 trillion (up 1.85 on the previous year's R1.903 trillion). Total household spending in South Africa made up 61.61% of South Africa's GDP which equaled R3.14 trillion.
Note all figures were obtained from Statistics South Africa and uses 2010 constant prices.
The second biggest spending category for South African households is Non-durable goods. This is largely made up by food, beverages and tobacco, with total spending on this category coming in at R711.6 billion in 2018. Far smaller spending categories are Durable and semi-durable goods with the two making up 9.9% and 9.6% respectively of total household spending during 2018.
The summary below shows the total Rand value spent by South African households on various expenditure categories as well as the percentage this makes up of total household spending during 2018.
Services: R845.9 billion (43.6%)
- Non-durable goods: R711.6 billion (36.7%)
- Durable goods: R192 billion (9.9%)
- Semi-durable goods: R187.9 billion (9.7%)
In 2018 total household spending amounted to R1.937 trillion (up 1.85 on the previous year's R1.903 trillion). Total household spending in South Africa made up 61.61% of South Africa's GDP which equaled R3.14 trillion.
Note all figures were obtained from Statistics South Africa and uses 2010 constant prices.