FX.co ★ South Africa Leading Index Drops 0.2% MoM

In February 2025, South Africa's composite leading business cycle indicator fell by 0.2% compared to the previous month. This decline contrasts with the revised 1% increase noted in January. The decrease was influenced by reductions in seven of the ten component time series, outweighing the gains observed in two components, while one component remained stable. Key factors contributing to the decline included a drop in the approval of residential building plans and a slower growth rate over six months in the sales of new passenger vehicles. Conversely, the positive influences came from a widened interest rate spread and a rise in South Africa's export commodity price index, priced in US dollars.