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report on household income and expenditure - HOUSEHOLD INCOME AND by gyvwpsjkko

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									           HOUSEHOLD INCOME AND EXPENDITURE PATTERNS AND TRENDS,
                                 2008-2009


The Bureau of Market Research (BMR) of the University of South Africa (Unisa) recently
completed a report on household income and expenditure patterns and trends in South
Africa during the period 2008 to 2009. Selections of findings of this recently published
report are shown below.


HOUSEHOLD INCOME


There were 13 654 416 million households in South Africa during 2009.


       o These households had a combined income of R1 631 billion in 2009 compared to
          R1 531 billion in 2008 representing 6.5 % growth in household income in nominal
          terms during the period 2008 to 2009. These estimates are comparable to
          Reserve Bank estimates.
       o Almost 28 % of these households are found in the middle income group (R100 –
          R300k).
                                          FIGURE 1

       PERCENTAGE DISTRIBUTION OF HOUSEHOLDS BY INCOME CATEGORY: 2009


                                                                 11%
                    19%
                                                                               12%




        14%

                                                                              28%
                           16%



        R0-R50K     R50-R100K       R100-R300K    R300-R500K     R500-R750K     R750K+
The BMR research shows that 78.9 % of households in the highest income group (R750k+)
belong to the White population group. The African population has, however, shown marked
gains with respect to the R750k income group. The number of households in this highest
income group grew by 26 % during this period.


                                         FIGURE 2

      PERCENTAGE DISTRIBUTION OF HIGHEST INCOME EARNING HOUSEHOLDS BY
                           POPULATION GROUP: 2009

                                                                11%

                                                                               6%

                                                                                    4%




           79%



                        Africans      Asians        Coloureds         Whites




The percentage of African households in the lowest income group declined from 61.5 % in
2008 to 60.2 % in 2009. This trend is demonstrated in figure 3 below.
                                                  FIGURE 3

 PERCENTAGE DISTRIBUTION OF AFRICAN HOUSEHOLDS BY INCOME GROUP: 2008-2009


                    70
                         61.5 60.2
                    60


                    50
       Percentage




                    40


                    30
                                     21.6 21.9
                    20
                                                  14.3 15.2

                    10
                                                               1.7   1.9   0.6   0.6         0.3
                                                                                       0.2
                    0
                          R0-50K     R50K-R100K   R100-300K   R300-500K    R500-750K   R750K+
                                                    Income categories


                                                     2008     2009




Of all the households in the highest income group, 45.2 % are in the economic hub of the
country, namely Gauteng.
                                             FIGURE 4

PERCENTAGE DISTRIBUTION OF HIGHEST INCOME EARNING HOUSEHOLDS BY PROVINCE:
                                    2009

                              18%


             5%                                                                 45%




             16%

                                       16%


               Gauteng        Western Cape       KwaZulu-Natal   Eastern Cape   Other




HOUSEHOLD EXPENDITURE

According to Mr Edward Masemola (BMR Researcher), R1 656 billion was spent by
households in South Africa during 2009. In percentage terms the distribution of household
expenditure was as follows:


       o 23 % of this was spent on food
       o 14.7 % on housing and electricity
       o 10.7 % on income tax
       o The rest was spent on an assortment of items such as transport, medical and
          dental services, communication, furniture and household equipment, etc.
                                               FIGURE 5

          PERCENTAGE DISTRIBUTION OF HOUSEHOLD EXPENDITURE BY ITEM: 2009



                                                                                23%




                                                                                      11%
       51%


                                                                          15%


                         Food     Income tax      Housing & Electricity     Other




A disaggregation of household expenditure for Africans and Whites by expenditure group
shows that both population groups spent less on transport in 2009 compared to 2008, as
evidenced by a negative growth rate of -3.7 % for African households and -5.1 % for White
households (in nominal terms) during the period 2008-2009. It is also clear that African
household expenditure on recreation, entertainment and sport increased by 18.8 %
compared to 16.4 % for White households (in nominal terms).


INCOME AND EXPENDITURE OF HOUSEHOLDS IN SOUTH AFRICA, 2008–2009 (Research
Report no 395) was compiled by Mr ME Masemola (Senior Researcher), Prof CJ van Aardt
(Director, Income and Expenditure Research Division) and Mrs M Coetzee (Senior Computer
Scientist) of the Bureau of Market Research. The report, consisting of 130 pages, is available
from the Bureau of Market Research, PO Box 392, UNISA 0003.



                                               END


                                 Date of issue: 2010-11-24
Professional enquiries        Other enquiries

Mr ME Masemola                Ms P de Jongh
Bureau of Market Research     Bureau of Market Research
University of South Africa    University of South Africa
PO Box 392                    PO Box 392
UNISA                         UNISA
0003                          0003
Tel: (012) 429 3004           Tel: (012) 429 3338
Fax: (012) 429 3170           Fax: (012) 429 2987
E-mail: masemme@unisa.ac.za   E-mail: djongp@unisa.ac.za

								
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