A leading indicator of the South African economy declined for the fourth consecutive month in June, data released by the South African Reserve Bank showed Tuesday.
The composite leading business cycle indicator decreased 1.1 percent sequentially to 129.3 in June, marking the fourth contraction in a row. Year-on-year, the index declined by 4.3 percent during the month, after falling 1.7 percent in the previous month.
Of the seven components for which data is available, three increased during the month with the largest negative contributions coming from a decline in the export commodity price index and a decline in the number of residential building plans passed.
The major positive contributions to the movement in the leading indicator came from an improvement in the average hours worked in the manufacturing sector and an improvement in the volume of orders in the manufacturing sector.
The composite coincident business cycle indicator for May, which measures the current situation, increased by 0.7 percent sequentially to 159.2, the agency said.
Meanwhile, the composite lagging business cycle indicator remained unchanged month-to-month at 105.3 in May.
by RTT Staff Writer
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