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Business cycle indicator falls in May

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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. ..

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