The South African economy expanded 0.9 percent year-on-year in the second quarter of 2019, after showing no growth in the previous period and beating market expectations of 0.8 percent. Service activities were the main drivers of GDP growth, while manufacturing expansion eased and output continued to contract for agriculture, mining, utilities and construction.
Within services, output growth was recorded for: trade, catering and accomodation (0.6 percent vs -0.6 percent in Q1); transport, storage and communication (2.5 percent vs 1.1 percent); finance, real estate and business services (3.1 percent vs 2.4 percent); general government services (1.8 percent vs 1.0 percent); and personal services (0.8 percent vs 1.3 percent).
Meanwhile, manufacturing expanded at a softer 0.5 percent, compared to 0.6 percent in the previous period. Output contracted for: agriculture (-6.7 percent vs -12.7 percent); mining (-2.1 percent vs -4.6 percent); electricity, gas and water (-0.5 percent vs -1.4 percent); and construction (-2.5 percent vs -2.3 percent).
On a seasonally adjusted annualized basis, the economy grew 3.1 percent in the second quarter, following a revised 3.1 percent contraction in the first three months of the year and beating market consensus of 2.4 percent. It was the highest growth rate since the fourth quarter of 2017, boosted by a rebound in mining and manufacturing output.
9/3/2019 10:28:34 AM