ECONOMY
Households spent R873bn in 2005
Posted Tue, 24 Jan 2006
South African households spent R873-billion last year, with about a fifth of that amount spent on food, but there is growing evidence of the emerging middle class, according to the findings of a new survey.
The Bureau of Market Research at Unisa found in its living standards survey that eight percent of the country's 12 million households are still very poor, while seven percent of households are classified as rich, contributing 31 percent of total household expenditure.
Despite the economy experiencing its 77th month of record growth, the effect is still to filter down to the poor, with an unemployment rate estimated at 26.5 percent, according to Business Day.
The survey found there was rapid growth in the middle class — mostly previously disadvantaged blacks — while there was also a widening gap between rich and poor.
R11-billion was spent on holidays in 2005, and R10.9-billion on recreation, entertainment and sport, with more than half of this
from rich households.
According to Business Report, this is the first living standards survey by the bureau to cover the whole country, and there are no comparative figures.
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