Earlier this week, Statistics SA released results from its latest economic activity survey (EAS), which measures overall activity in the economy.
The EAS is an annual survey, based on a sample of private and public enterprises operating in the formal non-agricultural business sector, excluding financial intermediation, insurance and government institutions.
As an economy-wide survey, the EAS is a particularly important instrument of measurement.
The results are used to compile estimates of gross domestic product (GDP) and its components. They are also used by the private sector in analyses of comparative business and industry performance, and by institutions such as the SA Reserve Bank.
The survey provides information on a range of important indicators for each of the main economic sectors.
Selected operating ratios.
The 2003 EAS used Stats SA's new business sampling frame, based on the VAT database obtained from the SA Revenue Service (Sars). This was supplemented by data from Sars's income tax system.
A sample of 12 271 enterprises was drawn. A stratified random sample design, based on business turnover, was used.
In terms of total turnover at current prices, the EAS found an increase of 11 percent for 2003 compared with 2002 in mining and quarrying. This was mainly the result of higher turnover by large enterprises active in the mining of metal ores other than gold and uranium.
The total turnover of the manufacturing industry reflected an increase of 10.9 percent, mainly due to increased activity in the manufacture of transport equipment, basic metals, fabricated metal products, machinery and equipment, and accounting and computing machinery.
The construction industry reflected an increase of 8.4 percent in turnover for 2003 and trade industry an increase of 8.8 percent.
In one of the few decreases recorded, net profit before providing for company tax and dividends in the mining and quarrying industry fell 26.6 percent for 2003 compared with 2002, mainly due to the strengthening of the rand against major currencies.
The transport, storage and communication industry reflected a decrease of 15.9 percent. Net profit before providing for company tax and dividends in the manufacturing industry reflected an increase of 27.1 percent.
Large enterprises in the coke, refined petroleum products and nuclear fuel manufacturing activities reported higher profits.
The electricity, gas and water supply industry reflected an increase in net profit of 51.6 percent; the construction industry an increase of 88.8 percent; the trade industry an increase of 21.3 percent; the real estate and other business services industry (excluding financial intermediation and insurance) an increase of 13.7 percent; and the community, social and personal services industry (excluding government institutions) an increase of 6.1 percent, which was mainly the result of increases in the health and social work division.
The profitability ratio (net profit after tax to turnover) increased in most sectors. But the mining and quarrying industry reflected a decrease from 0.3 percent in 2002 to 0.18 percent in 2003.
The figure for the transport, storage and communication industry decreased from 0.08 percent to 0.06 percent.
The community, social and personal services industry (excluding government institutions) was unchanged at 0.08 percent.
The EAS is the primary source for estimating annual levels of value added and GDP. On November 30, Stats SA will publish a revised time-series for nominal and real estimates of GDP.
The figures are revised from 1998 onwards as part of the normal periodic benchmarking and rebasing of national accounts.