Household debt relative to disposable income reached a new high of 73,75% in the fourth quarter of 2006, the South African Reserve Bank said in its quarterly bulletin released on Thursday.
The gross savings ratio as percentage of gross domestic product declined to 1,5% in 2006 from 1,75% percent in 2005.
”After allowing for depreciation, the household sector’s consumption exceeded its income in 2006, resulting in the first-ever net negative saving by the household sector for a full year,” the bank said.
Real final expenditure by households increased at an annualised rate of 7,75% percent in the fourth quarter of 2006, while the annual growth came to 7,25% for the year as a whole.
Expenditure on durable goods was up to 8,5% in the fourth quarter but the bank said outlays on furniture, household appliances and medical equipment slowed in the same period.
Expenditure on semi-durable goods came down to 8% in the fourth quarter, while expenditure on non-durable goods picked up to 6,5% in the fourth quarter. — Sapa