South Africa's leading business cycle indicator down 0.6% m/m in June 2013.

By bne IntelliNews August 21, 2013

The South African Reserve Bank said that its composite leading business cycle indicator decreased by 0.6% m/m in June, after dropping by 0.4% m/m in May. Leading indicators are a popular way to predict turning points in the business cycle.

Ten component series were available for June, and six of them dropped, while the remaining four rose. In June, the largest negative effect was attributed to a decline in the number of approved residential building plans, followed by a decrease in the export commodity price index. On the other hand, major positive contributions resulted from a widening of the interest rate spread, as well as acceleration in the six-month smoothed growth rate in the real M1 money supply.

In y/y terms, the composite leading business cycle indicator increased by 2.4% in June, after rising by 2% in May.

Related Articles

PetroSA, Rosgeo sign $400mn oil and gas exploration agreement for South Africa

South Africa's national oil company PetroSA and Rosgeo, the geological exploration company of the Russian Federation, have signed an agreement on a $400mn oil and gas development project in South ... more

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more

South Africa receives another downgrade to junk

Fitch Ratings on April 7 downgraded South Africa to junk status following the removal of Pravin Gordhan as finance minister and the enusing political crisis. Fitch's downgrade to 'BB+' ... more

Dismiss