South African households cut their spending in the fourth quarter of 2013, Reserve Bank data showed.
The Reserve Banks’ quarterly bulletin showed that spending growth had contracted 3.6% in the fourth quarter from a revised 0.8% contraction in the third quarter.
Tighter lending conditions and higher consumer prices led to households spending less in the fourth quarter.
Government spending though increased from 1.5% to 2% in the final quarter of 2013, as the state spent on Nelson Mandela’s funeral.