South African Reserve Bank. Picture: MARTIN RHODES
South African Reserve Bank. Picture: MARTIN RHODES

The SA Reserve Bank’s composite leading business cycle indicator declined in September, according to data published by the central bank on Tuesday.

The annual fall of 1.6% continues the streak of declines for the year. On a month-on-month basis it fell 0.6%.

The leading indicator offers a projection of SA’s economic growth cycle for the next six to 12 months by measuring changes in a range of components over time, including among others the number of approved building plans, job advertisement space, manufacturing order volumes and passenger vehicles sold.

Decreases in four of the indicator’s nine components, outweighed increases in the remaining five, the bank said.

The largest negative contributions to the movement in the leading  indicator in September, came from declines in the number of residential building plans approved, and a deceleration in the 12-month percentage change in job advertisement space.

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