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Johannesburg - The South African Reserve Bank’s leading business cycle indicator rose by 1.8% in June compared with May, the central bank said on Tuesday.
Seven out of 10 of the components increased while only three fell, the bank said in a statement posted on its website, suprising market expectations higher.
The indicator had recorded three consecutive months of decline to May and the market was bracing for a further moderation as data signals a slowing economy.
The indicator is a forward-looking index that collates data such as job advertisements and volume of manufacturing orders to gauge the economic outlook.
The central bank left its repo rate steady at 5.5% at its previous meeting, after reducing it by 650 basis points between November 2008 and December 2010. The market expects interest rates to remain steady for longer.
Seven out of 10 of the components increased while only three fell, the bank said in a statement posted on its website, suprising market expectations higher.
The indicator had recorded three consecutive months of decline to May and the market was bracing for a further moderation as data signals a slowing economy.
The indicator is a forward-looking index that collates data such as job advertisements and volume of manufacturing orders to gauge the economic outlook.
The central bank left its repo rate steady at 5.5% at its previous meeting, after reducing it by 650 basis points between November 2008 and December 2010. The market expects interest rates to remain steady for longer.
