More residential building plans passed, contribute to ZA leading index increase

South African Reserve Bank figures have today revealed that South Africa's leading index moderately increased during May, after remaining stable the month before.

The leading index, measuring perceptions of economic conditions in the future, increased by 0.1 points to 99.6 during May, from 99.5 the month before.

Four out of 11 components increased during May, as six decreased and one remained unchanged.

May’s slight improvement owed to a drive during the twelve month percentage change in job advertisement space, plus a rise in the number of residential building plans passed.

The leading index declined by 1.2% yearly during May, following a 1.5% decrease during April.

The coincident index, measures present economic activity, which increased by 0.9% to 118.3 during April from 117.3, the month before.

Meanwhile, the lagging index, measuring previous economic conditions, rose by 104.3 during April from 102.2 in March.