P0310 2015 (Final 26 01 2017) - Statistics South Africa

1 2014/15An analysis of household expenditure and income data using the LCS 2014/2015 living conditions of Households in South Africa Statistical release T +27 12 310 8911 F +27 12 310 8500 Private Bag X44, Pretoria, 0001, South Africa ISIbalo House, Koch Street, Salvokop, Pretoria, 0002 STATISTICAL RELEASE P0310 living conditions of Households in South Africa An analysis of household expenditure and income data using the LCS 2014/2015 Embargoed until: 27 January 2017 11:30 AM ENQUIRIES: Werner Ruch 012 406 3317 Statistics South Africa ii P0310 (2015) living conditions of Households in South Africa 2014/2015 PREFACE This statistical release presents a selection of key findings and tables based on the data that were collected by Stats SA through the living conditions Survey (LCS) 2014/2015 that was carried out during the period 13 October 2014 to 25 October 2015.

2 This release focuses on the income, consumption and spending patterns of households at national and provincial levels. Dr PJ Lehohla Statistician-General Statistics South Africa iii P0310 (2015) living conditions of Households in South Africa 2014/2015 CAUTIONARY NOTES Readers are cautioned to take the following into consideration: Rounding off Due to rounding, the displayed totals in the tables do not always match the sum of the displayed rows or columns Lower response rates Household expenditure surveys, such as the living conditions Survey and the Income and Expenditure Survey (IES), are amongst the most demanding type of survey run by statistical agencies both for those implementing the survey and the households that are sampled to participate.

3 These surveys often suffer from a higher than average number of refusals relative to other household surveys in the survey programme. The LCS 2014/2015 had a notably lower response rate than previous household expenditure surveys (see Table in the explanatory notes chapter). The challenge of non-response was especially problematic in Gauteng. Given that Gauteng accounts for well over a third of all household expenditure in the country, lower responses, especially amongst high-income households in this province, means that we could see larger underreporting in various expenditure areas, most notably food, beverages and tobacco.

4 Statistics South Africa iv P0310 (2015) living conditions of Households in South Africa 2014/2015 CONTENTS List of tables .. vi List of figures .. viii CHAPTER 1 INTRODUCTION .. 1 BACKGROUND OF THE SURVEY .. 1 OUTLINE OF THIS REPORT .. 2 CHAPTER 2 KEY FINDINGS .. 3 RESULTS OF THE LCS 2014/2015 .. 3 COMPARISONS BETWEEN LCS 2014/2015, IES 2010/2011 AND NATIONAL 7 CHAPTER 3 SUMMARY OF THE FINDINGS .. 10 HOUSEHOLD COMPOSITION .. 10 HOUSEHOLD CONSUMPTION EXPENDITURE .. 11 HOUSEHOLD INCOME .. 13 EXPENDITURE AND INCOME QUINTILES .. 19 CHAPTER 4 FINDINGS .. 23 FOOD, BEVERAGES AND TOBACCO.

5 23 CLOTHING AND FOOTWEAR .. 25 HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS .. 29 FURNISHINGS, HOUSEHOLD EQUIPMENT AND ROUTINE MAINTENANCE OF THE DWELLING .. 33 HEALTH .. 36 TRANSPORT .. 40 COMMUNICATION .. 44 RECREATION AND CULTURE .. 46 EDUCATION .. 49 RESTAURANTS AND HOTELS .. 54 MISCELLANEOUS GOODS AND SERVICES .. 56 CHAPTER 5 EXPLANATORY NOTES .. 60 THE INSTRUMENTS OF DATA COLLECTION .. 60 Household questionnaire .. 60 Weekly diaries .. 60 Summary questionnaire .. 60 HOW THE LCS 2014/2015 WAS CONDUCTED .. 60 TIME SPAN .. 61 SAMPLE COVERAGE.

6 61 RESPONSE DETAILS .. 61 Statistics South Africa v P0310 (2015) living conditions of Households in South Africa 2014/2015 DATA COLLECTION .. 63 DATA PROCESSING .. 63 Coding of acquired items .. 63 DATA EDITING AND IMPUTATION .. 63 DATA ORGANISATION .. 64 CHAPTER 6 CONCEPTS AND DEFINITIONS .. 66 CHAPTER 7 STATISTICAL TABLES .. 68 Statistics South Africa vi P0310 (2015) living conditions of Households in South Africa 2014/2015 LIST OF TABLES Table : Comparison of past three household expenditure surveys (IES & LCS) .. 2 Table : total and average annual household consumption expenditure by main expenditure group for 2015.

7 3 Table : Overview of national household consumption expenditure by sex and population group of the household head, as well as by province and settlement type for 2015 .. 5 Table : Real and nominal growth between the IES 2010/2011 and LCS 2014/2015 by main expenditure group (in R millions) .. 7 Table : Real and nominal growth between 2011 and 2015 based on National Accounts by main expenditure group (in R millions) .. 8 Table : Percentage distribution of households by population group and sex of household head .. 10 Table : Average annual household income by sex of the household head .. 14 Table : Average annual household income by population group of the household head.

8 14 Table : Average annual income by household size .. 15 Table : Average annual household income by province .. 16 Table : Average annual household income by settlement type .. 17 Table : Percentage distribution of annual average household income by income per capita deciles .. 18 Table : Overview of consumption expenditure on food, beverages and tobacco by sex and population group of household head, as well as by province and settlement type .. 23 Table : Overview of consumption expenditure on clothing and footwear by sex and population group of household head, as well as by province and settlement type .. 26 Table : Annual average expenditure of households on housing, water, electricity, gas and other fuels by sex and population group of household head, province and settlement type.

9 30 Table : Overview of consumption expenditure on furnishings, household equipment and routine maintenance of the dwelling by sex and population group of household head, as well as by province and settlement type .. 33 Table : Overview of consumption expenditure on health by sex and population group of household head, as well as by province and settlement type .. 36 Table : Overview of consumption expenditure on transport by sex and population group of household head, as well as by province and settlement type .. 40 Table : Annual household expenditure on communication by sex, population group of household head, province and settlement type.

10 44 Table : Overview of consumption expenditure on recreation and culture by sex and population group of household head, as well as by province and settlement type .. 47 Table : Overview of consumption expenditure on education by sex and population group of household head, as well as by province and settlement type .. 50 Table : Percentage distribution of total household consumption expenditure on education attributed to public and private institutions by population group of household head .. 53 Table : Overview of consumption expenditure on restaurants and hotels by sex and population group of household head, as well as by province and settlement type.