The GDP figure for the (3^rd quarter 2019 -0,6% q/q and 0,1% y/y)

Gross domestic product (measured by production)

South Africa's gross domestic product (GDP) growth rate decreased by 0,6% in the third quarter of 2019.

South Africa's gross domestic product (GDP) decreased by 0,6% in the third quarter of 2019.

The mining and quarrying industry decreased by 6,1% and contributed -0,5 percentage point to GDP growth. Decreased production was reported for mining of PGMs, coal and iron ore.

Manufacturing industry decreased by 3,9% and contributed -0,5 percentage point to GDP growth.  Decreased economic activity was reported in basic iron and steel, non-ferrous metal products, metal products and machinery; and petroleum, chemical products, rubber and plastic products.

Transport storage and communication industry decreased by 5,4% and contributed -0,5 percentage point to GDP growth. Decreased economic activity was reported for land transport and transport support services.

In contrast, the trade, catering and accommodation industry increased by 2,6% and contributed 0,4 percentage point to the GDP growth. Finance, real estate and business services increased by 1,6% contributed 0,3 of a percentage point to GDP growth.

General government services increased by 2,4% mainly attributed to an increase in employment.

The unadjusted real GDP at market prices for the first nine months of 2019 increased by 0,3% compared with the first nine months of 2018.

Expenditure on GDP

Expenditure on real gross domestic product fell by 0,3% in the third quarter of 2019.

Household final consumption expenditure increased by 0,2% in the third quarter, contributing 0,1 of a percentage point to total growth. The main positive contributors to growth in HFCE were expenditures on food and non-alcoholic beverages (1,0% and contributing 0,2 of a percentage point) and restaurants and hotels (3,2% and contributing 0,1 of a percentage point). Negative contributions to growth in HFCE were reported for expenditures on clothing, housing, furnishings and recreation.

Final consumption expenditure by general government increased by 1,3%. Increases in employment and spending on goods and services were reported in the third quarter.

Gross fixed capital formation increased by 4,5%. The main contributors to the increase were machinery and equipment, other assets and transport equipment. Strong imports of machinery and equipment supported the increase in gross fixed capital formation.

There was a R9,5 billion drawdown of inventories in the third quarter of 2019. Large decreases were reported for the manufacturing, trade and mining industries.

Net exports contributed positively to growth in expenditure on GDP in the third quarter. Exports of goods and services were up 3,5%, largely influenced by increased trade in vegetable products; precious metals and stones; and vehicles and transport equipment.

Imports of goods and services decreased by 6,8%, driven largely by a decrease in imports of mineral products.

The GDP estimates are preliminary, and may routinely be revised on the basis of additional evidence that has become available by the time the subsequent quarter's estimates are released.