THE South African Reserve Bank’s composite leading business cycle indicator, a strong gauge of where the economic growth cycle is headed, decelerated to 91.6 points in July from the revised 92.6 points (91.6 points ) in June.The data suggest a tough growth outlook will remain, after the local economy rebounded more than expected in the second quarter, powered mainly by recovery in the manufacturing and mining sectors.READ THIS: Reserve Bank’s forward-looking economic gauge ticks upThe largest negative contributions to the movement in the composite leading indicator in July came from a decrease in the number of residential building plans passed and narrowing in the interest-rate spread.However, the largest positive contributions came from an increase in the locally produced export commodity price index, followed by an improvement in the Bureau For Economic Research’s business confidence index."[The] leading [business] indicator can be used as a proxy for GDP growth and if we asses t...
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