SA growth 'lacklustre'

"The South African economy continued to expand in the third quarter of 2011 but at a lacklustre pace, recording a growth rate broadly similar to that of the second quarter," the central bank said in its December Quarterly Bulletin.

Industrial action, especially in the mining and manufacturing sectors, held back third-quarter production. The bank said real value added by the mining sector contracted as strike activity added to the impact of work stoppages related to accidents, logistical problems and plant maintenance.

Agricultural output also declined as crops, while large, did not match the bumper crops harvested in the previous year.

For the manufacturing sector, strikes in several sub-sectors, fragile global demand and strong international competition were reflected in a mild contraction in production in the third quarter of 2011.

"This also spilled over to the electricity sector where real value added declined somewhat, amplified by significantly higher electricity tariffs," the bank said on Thursday, 8 December 2011.

There was a modest increase in the construction sector as civil construction activity expanded.

In the bond market, government remained the most important issuer of debt securities in the third quarter of 2011.

"Government bond yields declined to recent lows in early September, reflecting the appreciation in the exchange value of the rand, firm demand for bonds by non-residents, and expectations that short-term rates may remain low for longer in the face of subdued economic conditions," said the central bank.