SA business indicator points to slow growth

SOUTH Africa’s composite leading business economic indicator fell by 2.8% year on year (y/y) in February after a 2% y/y decline in January‚ supporting views for a weak economic growth rate for the year.

The data was released yesterday by the South African Reserve Bank.

The country’s seasonally adjusted leading economic indicator provides a guideline for economic activity and growth for at least six months ahead.

The indicator fell 0.6% in February compared with the preceding month‚ taking it to 99.6 points from 100.2 points in January. Levels of around 99.6 points were last seen in July with the indicator at 99.7.

Seven of the 11 component time series available for February decreased‚ while four increased.

The major negative contributions in February came from a decline in the number of residential building plans passed‚ and a decrease in the export commodity price index.

The largest positive contributions to the movement in the composite leading indicator in February came from an acceleration in the 12-month rate of change in job advertisement space‚ followed by an increase in the average hours worked per factory worker in the manufacturing sector.

The composite lagging business cycle indicator rose by 1.2% monthto-month in January and was up 2.3% y/y. – BDlive