Consumption indictors remain upbeat
6 November, 2017, 12:00 am
FIRM consumption and investment activity continues to support aggregate demand as revealed by partial indicators noted by the central bank.
In its Economic Review for the month ended October, the Reserve Bank of Fiji stated that partial indicators for consumption remained upbeat with a pick-up noted in net value added tax collections, which grew by 13.7 per cent and pay as you earn (PAYE) collections which grew by 6.5 per cent cumulative to September.
New lending for consumption purposes also grew by 13.1 per cent to $707.7 million on an annual basis.
This was higher than the 11.1 percent growth recorded in the same period last year.
The central bank noted that demand for luxury goods also increased reflected in higher registrations for new vehicles (4.4 per cent increase) in the same period.
RBF in its quarterly review, stated that consumer spending also remained firm in the September quarter as revealed by partial indicators.
Cumulative to September of this year, new vehicle registrations by the Land Transport Authority grew annually by 4.4 per cent while second-hand vehicle registrations declined by 32.6 per cent in the same period.
The decrease in second hand vehicles was attributed to higher duties on the importation of second-hand hybrid vehicles.
Meanwhile, private sector credit expanded by 11.5 per cent in September as monetary conditions remains supportive of growth.
This was mostly driven by growth in new commercial bank loans (+8.9 per cent) to the electricity, gas and water; real estate; building and construction; wholesale, retail, hotels and restaurants; mining and quarrying and the central and local Government sectors.