South Africa's leading business cycle indicator edges up in February

By bne IntelliNews April 24, 2013

The South African Reserve Bank said its composite leading business cycle indicator increased by 0.1% m/m in February 2013, moving higher for the eighth month in a row. The indicator, which gathers data such as vehicle sales, job advertisements, business confidence, manufacturing orders and money supply to estimate the economic outlook, was by 1% higher y/y in February, following a 1.9% y/y growth in January. Leading indicators are a popular way to predict turning points in the business cycle.

The central bank said that 4 of the indicator’s 11 components improved in February, with the largest positive contributions coming from an increase in the number of residential building plans approved and from an improvement in the business confidence index.

Among the 7 components that decreased, the largest negative contribution came from a decrease in the 12-month percentage change in job advertisement space, followed by a deceleration in the 12-month percentage change in the number of new passenger cars sold.

Related Articles

South Africa’s MTN fears sanctions may hinder profits repatriation from Iran

MTN Group, one of Africa’s biggest mobile operators, has said it will struggle to repatriate profits from its Iranian subsidiary MTN-Irancell if heavy sanctions are reimposed on Iran following ... more

Russia's Rosneft sets foot in Mediterranean with $1.125bn Eni deal

Russia's largest oil producer state-controlled Rosneft has acquired 30% in the largest natural gas field in the Mediterranean from Italian Eni, the company announced on October 9. Rosneft that ... more

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

Dismiss