FX.co ★ South Africa Leading Index Rises for 2nd Month

In July 2025, South Africa's composite leading business cycle indicator experienced a 0.9% month-on-month increase, marking the second successive rise following an upwardly revised gain of 0.5% in June. Out of the ten components available, seven contributed positively, with the most significant influences coming from increased US dollar–denominated export commodity prices and robust growth in passenger vehicle sales. Additional support was observed from improvements in manufacturing orders, job advertisements, building plan approvals, average manufacturing hours worked, and leading indicators from trading partners. Conversely, negative contributions stemmed from a slowdown in real M1 money supply growth, a reduced interest rate spread, and declining business confidence. Additionally, the composite coincident indicator advanced by 0.3% in June, bolstered by increased sales in wholesale, retail, and motor trade, as well as enhanced industrial production. Meanwhile, the lagging indicator saw a 0.5% decline during the same month.