By 
Expenditure on real GDP similarly posted a 0.2% decrease in Q2 2026. A mix of widening trade deficits and weak capital investment undermined moderate gains in consumer spending.
Consumer Spending Rises Modestly
Household final consumption expenditure (HFCE) grew by 0.4%, adding 0.3 percentage points to GDP expenditure. Consumers increased spending on essential items and leisure:
- Food & Non-Alcoholic Beverages: Up 1.2% (+0.2 percentage points).
- Recreation & Culture: Up 0.8% (+0.1 percentage point).
- Health: Up 0.7% (+0.1 percentage point).
However, spending contracted across essential overheads, including housing, water, electricity, gas, transport, communication, as well as clothing and footwear.
Investment and Capital Formation Decline
Gross fixed capital formation fell by 0.2% during the quarter. Capital expenditure was severely weakened by slumps in:
- Construction works: Down 4.0% (-0.7 percentage points).
- Transport equipment: Down 3.4% (-0.4 percentage points).
- Transfer costs: Down 7.9% (-0.2 percentage points).
- Other assets: Down 1.7% (-0.2 percentage points).
On the business front, an R8.8 billion build-up in inventory levels (seasonally adjusted and annualized) was registered, primarily concentrated in manufacturing and trade.
Net Exports Hit Growth
External trade delivered a significant drag on overall growth, with net exports subtracting 1.1 percentage points from GDP. While exports of goods and services rose by 0.9%—supported by trade in precious stones, metals, chemical products, paper, and live animals—imports jumped by a sharper 4.9%. The surge in imports was largely driven by demand for machinery, electrical equipment, mineral products, chemicals, and plastics.
Rebased National Accounts Expected in October 2026
Stats SA confirmed that, alongside the South African Reserve Bank, it is currently conducting a major benchmarking and rebasing exercise for national accounts estimates, shifting the base year to 2022. This initiative aims to align South Africa’s GDP statistics with international best practices and incorporate periodic structural datasets.
The official rebased and benchmarked figures are scheduled for publication in October 2026.
