PRETORIA, Sept 11 (Reuters) – Spending growth in South
Africa quickened to 4.7 percent in the second quarter from 4.3
percent in the first quarter as growth in fixed capital
formation increased and government spent more on wages, the
central bank said on Tuesday.
Households continued to tighten purse strings with spending
growth registering the lowest rate of increase in two years.
In its September Quarterly Bulletin, the South African
Reserve Bank said growth in household spending slowed to 2.9
percent in the second quarter, from 3.1 percent in the previous
quarter.
The bank said persistent increases in prices of
non-discretionary items such as transport and electricity likely
eroded consumer purchasing power.
Household debt increased faster than disposable income,
widening the ratio of household debt to income by nearly one
percentage point. The bank revised up the first quarter
debt-to-disposable income to 75.6 percent from the 74.7 percent
previously reported.
(Reporting by Xola Potelwa; editing by David Dolan)
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