Pretoria: South Africa’s real gross domestic product at market prices increased by 3.2% in the second quarter of 2012, up from 2.7% in the first quarter, Statistics South Africa (Stats SA) said on Tuesday.

Stats SA said the contributors to the increase in economic activity were mining and quarrying contributing 1.5%, and finance (the largest contributor to economic growth), real estate and business services contributing 0.5%, the wholesale, retail and motor trade; catering and accommodation industry contributed 0.4%.

Meanwhile, general government services contributed 0.3% while the transport, storage and the communication industry contributed 0.2%.

GDP manager at Stats SA Kedibone Mabaso said economic activity in the mining and quarrying industry reflected positive growth due to higher production in the mining of other metal ores including platinum, other mining and quarrying and coal. The slower growth in finance, real estate and business services was because of a decrease in banking services, among others.

The electricity, gas and water industry at -0.2% as well as the manufacturing industry contributed negatively to GDP.

Manufacturing showed negative growth of 1%. The reasons for this could be attributed to lower production in basic iron and steel as well as in wood and wood products, noted Stats SA.

The unadjusted real GDP at market prices increased by 3% year-on-year, while the unadjusted real GDP at market prices for the first six months of 2012 increased by 2.5% compared to the first six months of 2012.

For the second quarter of 2012, the nominal value added during the second quarter of 2012 was R788 billion. This is R23 billion more than in the first quarter of 2012.

The consensus among analysts was that GDP would rise to 3.3%.