NATIONAL ACCOUNTS PRIVATE CONSUMPTION EXPENDITURE Susan Knox Seminar

NATIONAL ACCOUNTS PRIVATE CONSUMPTION EXPENDITURE Susan Knox Seminar on Developing a programme for the implementation of the 2008 SNA and supporting statistics 17 -19 October 2012 Pretoria, South Africa

Contents n Background n Overall view n Collection of data n Process of estimation n Deflation 2

Private consumption expenditure Sum of final consumption expenditure on goods and services by resident household n Durable goods – 7% n Semi-durable goods - 9% n Non-durable goods - 40% n Services - 44% According to purpose n Food n Clothing n Household furnishings n Health n Transport n Entertainment n Education n Hotels n Miscellaneous 3

Process of estimation n n NA uses indicators from various sources to determine the growth rates of the different components of PCE These growth rates are applied to the benchmarked data from the base year on a quarterly basis 4

Collection of data Durable goods Furniture & household appliances – Stats SA & Retail Liaison Committee (RLC) – – – – Personal transport equipment Motor cars and minibus - National Association of Automobile Manufactures of SA (NAAMSA) Motor cycles – Association of Motorcycle Importers and Distributors (AMID) Bicycles - RLC Used company cars – Stats SA, Money & Banking data Caravans - Jurgens Caravans Commercial vehicles - NAAMSA Trade margin of used cars – Stats SA, Money & Banking data 5

Collection of data - continued Durable goods – cont. § Computers and related equipment – RLC & Import data § – – – Recreation and entertainment goods Radio sets and recorders - RLC Communication equipment - N 01 form Photographic equipment - RLC Music instruments - RLC Boats and aircrafts - RLC Television sets - RLC & Stats SA 6

Collection of data - continued Durable goods – cont. § Miscellaneous goods – Jewelry and other personal effects – RLC – Medical equipment – Registrar of Medical Schemes 7

Collection of data Semi-durable goods Clothing and footwear – Stats SA & RLC Household textiles, furnishings and glassware – Stats SA & RLC Motorcar parts – Stats SA Recreational and entertainment goods – RLC Miscellaneous goods – Stats SA & RLC 8

Collection of data Non-durable goods Food, beverages and tobacco – Food - Stats SA & Dept Of Agric – Non-alcoholic beverages - SAB_ABI (Amalgamated Beverage Industries) – Alcoholic beverages - SAB & Customs & Excise – Tobacco - Customs & Excise – Narcotics - Stats. SA – – Household fuel and power Water supply – Stats SA & N 01 Liquid fuels and other fuels - Dept of Minerals & Energy Electricity and gas – Stats SA Product for the regular maintenance and repair of dwelling – Stats SA 9

Collection of data - continued Non-durable goods – cont. Household consumer goods – Stats SA Medical and pharmaceutical goods – Stats SA & Registrar of Medical Schemes Petroleum products – Stats SA, Dept of Minerals & Energy Recreation and entertainment goods – Stats SA & RLC 10

Collection of data Services Rent, fuel and power – Gross (Actual & Imputed), Flat, and Rent in kind Capital stock & Stats SA – Other housing services – Stats SA & RLC – Insurance in respect of dwelling - Capital Markets – Sanitary and refuse disposal - Stats SA – Levies - Stats SA – Service for the regular maintenance and repair of dwelling - Stats SA & RLC Household services – Domestic servants - Capital stock, Stats SA – Home care services – Cleaning, dyeing and laundering - Stats SA , RLC – Repairs of furniture, appliances, clothing and footwear - Stats SA , RLC 11

Collection of data - continued Services – cont. Medical services – Registrar of medical schemes, Stats SA, Capital Markets Recreation and entertainment services – RLC, Stats SA, SATU (SA teachers’ union) & SAA 12

Collection of data - continued Services – cont. Transport and communication services – Other services of personal transport - Stats SA – Other purchased transport services – Motor car insurance - Capital Markets – Transport of money - Stats SA – Passenger transport services – SAA, Metrorail, Stats SA , Portnet – Maintenance and repair of transport equipment Stats SA – Telephone services – Telkom & Vodacom – Postage services – Post office – Telegrams – Post office 13

Collection of data - continued Services – cont. Miscellaneous services – Hotels, cafes and restaurants : Stats SA – Personal care services - Stats SA & RLC – Prostitution – Stats SA – Financial services • Banking costs - BA 120 form • Service charges for life assurance and pensions - Capital Markets • FISIM – Other services – Stats SA – Security services – Security companies & Capital stock – Miscellaneous services abroad & tourists in SA BOP division 14

Estimation method n n n n Where current data source is used: Y-on-Y growth rate from various sources is used Growth rate is applied to the relevant quarter 2010 Q 1 = 2009 Q 1 * 1+Ry 2010 Q 2 = 2009 Q 2 * 1+Rx Where Volume Index is used: Volume Index: Y-on-Y growth rate of volume indicator from various sources is used (Q) Price Index: Y-on-Y growth rate of relevant CPI from Stats SA is used P X Q = Value 15

Deflation n n Each separate series of PCE is deflated by the relevant CPI series for that sector e. g. – Furniture and appliances – Recreational and entertainment goods – Clothing and footwear – Household textiles and furnishings – Motorcar tyres, spares and parts – Non-durable goods – Services such as medical, educational, entertainment , etc. Where volume indicators are used, there is an implied deflator e. g. – Personal transport equipment – Household fuel and petroleum products – Rent – Domestic servants – Telephone and postage services – Accommodation 16

THANK YOU ! 17