SA’s economy looks set for improved growth in the next six to 12 months, according to the Reserve Bank’s latest composite leading business cycle indicator. The leading indicator broke the contraction spell with a 0.6% increase in August compared with a year earlier. The indicator, which suggests how economic growth could perform six to 12 months ahead, had been contracting since January. The latest indicator numbers are in line with expectations for the economy to grow more than 1% in 2017, up from the 0.5% growth expected in 2016, improving chances of slightly better investments and job creation in 2017. Compared with July, the indicator rose by 1.4% in August, with eight of the 10 economic indicators that were available for August increasing while two decreased. The Bank compiles the leading indicator by assessing monthly movements in various economic indicators such as building plans passed, commodity prices and new passenger vehicles sold. The largest positive contributions resu...
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