South African Household Wealth Index
Q4 2012
Collectively, South African households experienced a second consecutive (quarterly) strong increase in the value of their nominal net wealth during the fourth quarter of 2012 (Q42012). This happened despite a number of violent labour strikes at South African mines, which dented confidence and sentiment, as well as mediocre domestic economic growth and a slowing international economy.
According to the Momentum/UNISA South African household wealth index, nominal household wealth increased at a seasonally adjusted and annualised rate of 28.8% in Q4 2012 following an increase of 16% in Q3 2012 (quarter over quarter seasonally adjusted percentage change expressed at an annual rate – QoQSAA). These increases contributed to the value of nominal household wealth surpassing the R6 000 billion level for the first time.
The main driving force behind the increase in nominal household wealth was a strong increase in the value of South African household assets. Valued at current prices (nominal terms), South African household assets increased by 28% (QoQSAA) in Q4 2012, while liabilities increased by 25%. In Q3 2012 nominal assets (QoQSAA) increased by 14.3% and liabilities by 7.6%.
The main source of the increase in the value of South African household assets was the strong performance of financial assets, which constituted 72% of the value of total nominal assets by the end of 2012. The value of financial assets was driven by the performance of share prices. On an annualised basis, the JSE All Share Index increased by 45.2% during Q4 2012 (quarterly increase annualised).
Expressed in real QoQSAA-terms, household wealth increased by 14% during Q4 2012, following an increase of 12% during Q3 2012. For the year 012, real household wealth increased by 7% after declining by 1.1% in 2011. Since 1975 real net wealth per household has decreased by, on average, 0.04% per year, suggesting that household balance sheets are not well at all.
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