Real household consumption spending grew at an estimated year-on-year rate of 5,9% during 2004, according to Budget information tabled in Parliament on Wednesday.
The documents were tabled by Finance Minister Trevor Manuel while presenting his Budget in the National Assembly.
The ”buoyant” growth in household consumption was supported by the wealth effects of rising property and share prices relative to debt exposure, positive employment growth, and accelerated welfare spending by the government.
Substantial disposable income was released for spending by the six percentage point reduction in short-term interest rates since mid-2003.
Consumer confidence remained high, and at constant prices, sales of durable and semi-durable goods soared by an estimated 15,3% and 13,7%, respectively, in 2004.
Non-durable goods grew more moderately.
The highest growth was recorded in motor vehicles and furniture sales in the durables category and in clothing, footwear and household textiles in the semi-durables category. – Sapa