SA’s composite leading business economic indicator decreased by 1.1% month on month (m/m)‚ the South African Reserve Bank (SARB) said on Tuesday.

Seven of the 10 component time series that were available for June 2012 decreased‚ while three increased.

The largest negative contributions in June came from a decline in the export commodity price index‚ as well as a decline in the number of residential building plans passed.

The major positive contributions to the movement in the leading indicator in June came from an improvement in the average hours worked in the manufacturing sector‚ followed by an improvement in the volume of orders in the manufacturing sector.

The composite coincident business cycle indicator increased by 0.7% m/m in May 2012.

The composite lagging business cycle indicator remained unchanged on a monthly basis in May 2012.

On a year-on-year (y/y) basis the leading indicator dropped for the sixth consecutive month‚ falling 4.3% y/y in June after a 1.7% y/y decline in May and a 1.8% y/y decrease in April.

In July 2012‚ the SARB cut the repo rate by 50 basis points to 5.0% after keeping it steady since November 2010‚ partly in response to the slowing growth momentum. - I-Net Bridge