South Africa Leading Index Falls 0.3% MoM

2026-07-28 07:59 By Erika Ordonez 1 min. read

The composite leading business cycle indicator in South Africa fell by 0.3% month-over-month in May 2026, easing from an upwardly revised 2.0% decline in the previous month.

This marked the second consecutive monthly contraction, with weakness in five of the ten available component time series, while the other five provided support.

The largest negative contributors included weaker business confidence, fewer building plans approved for flats, townhouses and larger houses, and a decline in the commodity price index for South Africa’s main export products.

Additional pressure came from shorter average hours worked per factory worker in manufacturing and a narrower interest rate spread between 10-year government bonds and 91-day Treasury bills.

Meanwhile, support came from gains in real M1 money supply growth, new passenger vehicle sales, domestic manufacturing orders, job advertisements, and the composite leading business cycle indicator for South Africa’s major trading partners.



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South Africa Leading Index Falls 0.3% MoM
The composite leading business cycle indicator in South Africa fell by 0.3% month-over-month in May 2026, easing from an upwardly revised 2.0% decline in the previous month. This marked the second consecutive monthly contraction, with weakness in five of the ten available component time series, while the other five provided support. The largest negative contributors included weaker business confidence, fewer building plans approved for flats, townhouses and larger houses, and a decline in the commodity price index for South Africa’s main export products. Additional pressure came from shorter average hours worked per factory worker in manufacturing and a narrower interest rate spread between 10-year government bonds and 91-day Treasury bills. Meanwhile, support came from gains in real M1 money supply growth, new passenger vehicle sales, domestic manufacturing orders, job advertisements, and the composite leading business cycle indicator for South Africa’s major trading partners.
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