An interesting article by Marie Antelme of Coronation Investment Managers. She discusses the squeeze on South African household spending. Total compensation increased by 7.6% in 2014 but real disable income only grew by 1.4%. She also discusses the pressures on both upper and lower income earners and their view on available credit and rising debt levels. It makes for an thought provoking read.
Following gravely anaemic growth in recent years, the resuscitation of the South African economy will depend on one key area – household spending. Accounting for more than 60% of GDP, this remains the lifeblood of the domestic economy.
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