SA’s business cycle indicator rises 0.9% in January 2025

The composite leading business cycle indicator in South Africa rose by 0.9% monthly in January 2025. The latest number from the Reserve Bank follows a revised fall of 1.5% in the previous month.

The rebound was driven by increases in 4 of the 10 available component time series, which outweighed declines in five components, while one remained unchanged.

The most significant positive contributors were an acceleration in the six-month smoothed growth rate in the number of new passenger vehicles sold and an increase in the number of residential building plans approved.

On the other hand, the largest negative contributors were a decline in the average hours worked per factory worker in the manufacturing sector and a slowdown in the six-month smoothed growth rate in the job advertisement space.