Pietermaritzburg and the

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Pietermaritzburg and the uMgungundlovu District
January to June 2007
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BUSINESS ACTIVITY
The PMB Economy is characterised by increasing
business trade, both in terms of value and
volume. This is evident in the value of total
economic activity in the PMB economy. The robust
increase in sales is mostly due to the nature of
the PMB economy, being biased towards consumer
expenditure and behaviour.
The economy is experiencing real increases in
business activity and profitability
Impact on Profits, Salaries and Wages?
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ECONOMIC PERFORMANCE INDICATOR
The composite leading and coincident indicators
are a times series. The Economic Performance
Indicator (EPI) is similar and is formed by
aggregating a variety of component indicators.
The EPI for Pietermaritzburg and the
Umgungundlovu district is designed to provide
qualitative and quantitative information on
short-term economic movements, especially at the
turning points, and long-term trend movements in
the local economy. The EPI comprises a set of
component series selected from a wide range of
key short-term economic indicators (most of the
individual economic indicators are included).
These key short-term economic indicators are
weighted in terms of their relative importance in
influencing the economic activity of the district
economy. The EPI is thus a weighted economic
performance indicator.
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ECONOMIC PERFORMANCE INDICATOR
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ECONOMIC PERFORMANCE INDICATOR
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ECONOMIC PERFORMANCE INDICATOR
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THREE MAJOR ECONOMIC REASONS
Interest rates
Increased Government Current Expenditure
Historical Low Base
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TURNOVER AND REMUNERATION
Turnover refers to total gross sales of
institutions.
Remuneration of employees includes primarily,
salaries, wages, services and other bonuses,
allowances, overtime payments, retirement
benefits, contributions to medical, pension and
provident funds, etc.
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TURNOVER AND REMUNERATION
Total Business Turnover increased with 1 y-o-y
during the first two quarters of 2007
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TURNOVER AND REMUNERATION
Total Business Remuneration decreased with 4.48
y-o-y during the first two quarters of 2007
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BUSINESS EXPANSIONS
ARE BUSINESSES EXPANDING AND INVESTNG
PMB? THEY SHOULD LOOKING AT TURNOVER!!!!
YES THEY ARE!!!!
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BUSINESS INVESTMENTS
Use Log Values, because of the nature of the
actual values. This is the trend for loans
approved to businesses for the purpose of
expansions
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BUSINESS INVESTMENTS
The Value of Business Loans increased by 54 in
2006 year-on-year and increased by a further 107
year-on-year during the first two quarters of
2007. It is both the number of loans and the
value per loan that have increased
This suggest massive investment by businesses in
the economy.
The next couple of tables and graphs supports
this view
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BUSINESS INVESTMENTS
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BUSINESS EXPANSIONS
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BUSINESS EXPANSIONS
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BUSINESS EXPANSIONS
WHY ARE BUSINESSES EXPANDING AND INVESTNG
PMB? INCREASING TUNROVER!!!!
SOARING BUSINESS CONFIDENCE
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BUSINESS CONFIDENCE SURVEY
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BUSINESS CONFIDENCE SURVEY
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BUSINESS CONFIDENCE SURVEY
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BUSINESS CONFIDENCE SURVEY
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BUSINESS CONFIDENCE SURVEY
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BUSINESS CONFIDENCE SURVEY
The BCI for Pietermaritzburg and the
uMgungundlovu District at present is 83 compared
to 85 in 2005 (83 for South Africa at December
2006) and should be interpreted as follows, i.e.
a value of 50 is indicative of neutrality, 100
indicates extreme confidence and 0 indicates
extreme lack of confidence. It seems that
businesses are positive and confident about the
current and future state of business in
Pietermaritzburg and in the uMgungundlovu
District.
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SO WHAT?
IMPACT OF INVESTEMNT AND BUSINESS CONFIDENCE????
EMPLOYMENT
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LABOUR MARKET
The Number of Claims for Unemployment Benefits
decreased by 8.24 y-o-y during the first two
quarters of 2007
The Number of New Job Postings increased by 2.23
y-o-y during the first two quarters of 2007
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LABOUR MARKET
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LABOUR MARKET
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LABOUR MARKET

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SO WHAT?
IMPACT OF GROWING ECONOMY, EMPLOYMENT AND HIGHER
INCOME LEVELS???
PROPERTY BOOM
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RESIDENTIAL PROPERTY MARKET
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RESIDENTIAL PROPERTY MARKET
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RESIDENTIAL PROPERTY MARKET
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RESIDENTIAL PROPERTY MARKET
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RESIDENTIAL PROPERTY MARKET
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SO WHAT?
IMPACT OF GROWING ECONOMY, EMPLOYMENT AND HIGHER
INCOME LEVELS???
RETAIL BOOM
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RETAIL ACTIVITY
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RETAIL ACTIVITY
December
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RETAIL ACTIVITY
December
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RETAIL ACTIVITY
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SO WHAT?
IMPACT OF GROWING ECONOMY, EMPLOYMENT AND HIGHER
INCOME LEVELS???
BOOMING VEHICLE MARKET
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VEHICLE AND TRANSPORT SECTOR
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VEHICLE AND TRANSPORT SECTOR
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VEHICLE AND TRANSPORT SECTOR
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SO WHAT?
IMPACT OF GROWING ECONOMY, EMPLOYMENT AND HIGHER
INCOME LEVELS???
CONSTRUCTION BOOM
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CONSTRUCTION SECTOR
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CONSTRUCTION SECTOR
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CONSTRUCTION SECTOR
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CONSTRUCTION SECTOR
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SO WHAT?
WHAT ABOUT DEBT LEVELS???
NO PROBLEM?
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NUMBER OF CIVIL CASES FOR DEBT, LIQUIDATIONS
INSOLVENCIES
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NUMBER OF CIVIL CASES FOR DEBT, LIQUIDATIONS
INSOLVENCIES