Business cycle indicator falls in May
The numbers reflect the general economic weakness in the second quarter
Business activity was under significant pressure in May as SA grappled with the fallout of severe flooding in KwaZulu-Natal and load-shedding, data from the Reserve Bank showed on Tuesday.
The Bank’s composite leading business cycle indicator for May, which offers a projection of SA’s economic growth cycle for the next 6-12 months, decreased by 0.7% on a monthly basis and a much heftier 8.5% annual contraction. Seven of the 10 components comprising the indicator outweighed increases in the remaining three. ..