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South Africa Leading Economic Index

Price

0.8 %
Change +/-
+0.3 %
Percentage Change
+46.15 %

The current value of the Leading Economic Index in South Africa is 0.8 %. The Leading Economic Index in South Africa increased to 0.8 % on 2/1/2024, after it was 0.5 % on 10/1/2023. From 2/1/1960 to 4/1/2024, the average GDP in South Africa was 0.2 %. The all-time high was reached on 6/1/2020 with 4.8 %, while the lowest value was recorded on 4/1/2020 with -6.4 %.

Source: South African Reserve Bank

Leading Economic Index

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Leading Indicator

Leading Economic Index History

DateValue
2/1/20240.8 %
10/1/20230.5 %
9/1/20231.3 %
8/1/20230.8 %
4/1/20220.5 %
3/1/20221.2 %
1/1/20220.8 %
12/1/20210.2 %
11/1/20210.4 %
10/1/20210.5 %
1
2
3
4
5
...
40

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In South Africa, the Composite Leading Business Cycle Indicator evaluates the direction of real economic activity in real time. It is calculated based on various components, including building plans approved, new passenger vehicles sold, commodity price index for main export commodities, index of prices of all classes of shares traded on the JSE, job advertisements, volume of orders in manufacturing, real M1, average hours worked per factory worker in manufacturing, interest rate spread, composite leading business cycle indicator of major trading-partner countries, business confidence index, and gross operating surplus as a percentage of GDP. The index has a base value of 100 as of 2010.

What is Leading Economic Index?

Leading Economic Index: A Deep Dive into Macroeconomic Indicators The Leading Economic Index (LEI) is an essential tool in the field of macroeconomics, providing crucial insights for economists, financial professionals, and policymakers. At Eulerpool, we specialize in presenting comprehensive and accessible macroeconomic data, and the LEI is at the core of our analytical repertoire. Designed to predict future economic activity, the LEI aggregates several economic variables to offer a composite snapshot of anticipated economic performance. By monitoring these indicators, users can gain valuable foresight into economic trends, aiding in strategic decision-making and risk management. The LEI is composed of multiple components, each carrying significant weight in determining the overall index. Typical components include average weekly hours worked in manufacturing, new orders for consumer goods and materials, building permits for new private housing units, stock prices, the Leading Credit Index, the interest rate spread (10-year Treasury bonds minus Federal Funds rate), and average consumer expectations for business conditions. These components are carefully selected for their ability to signal changes in economic activity before they occur, making the LEI a powerful prognostic tool. Each component is sensitive to economic shifts, and collectively, they provide a balanced view of the economy’s directional trends. Incorporating the LEI into economic analysis allows for a forward-looking perspective, where historical data is leveraged to predict future economic performance. This is not merely beneficial for policymakers and economists, but also for investors who seek to optimize their portfolios based on anticipated economic conditions. For instance, trends in the LEI can influence decisions on stock market investments, real estate ventures, and even business expansion initiatives. By staying ahead of economic trends, stakeholders can make more informed and strategic decisions. One of the notable strengths of the LEI is its composite nature. Individual economic indicators, while valuable, can be volatile and subject to short-term fluctuations. The LEI mitigates this volatility by combining several indicators, offering a more stable and reliable measure. This composite approach captures various aspects of economic activity, including consumer sentiment, industrial activity, and financial market conditions, thereby providing a well-rounded perspective on the economy’s future trajectory. The methodology behind the LEI involves rigorous statistical analysis and economic modeling. Each component is assigned a weight based on its predictive power, and these weights are periodically reviewed and adjusted to ensure the index remains relevant and accurate. The components are seasonally adjusted to remove effects of regular seasonal patterns, ensuring that the index reflects genuine economic trends rather than seasonal variations. This meticulous process underscores the reliability and utility of the LEI as a forecasting tool. For businesses, the LEI serves as a barometer of economic health, aiding in strategic planning and operational adjustments. For instance, a rising LEI might suggest a favorable economic environment, encouraging businesses to invest in new projects, hire additional staff, or increase production. Conversely, a declining LEI could prompt businesses to exercise caution, perhaps by holding off on significant expenditures or reevaluating financial strategies. In this way, the LEI helps businesses align their operations with projected economic conditions, fostering stability and growth. Investors also benefit greatly from the insights provided by the LEI. Financial markets are inherently forward-looking, and the LEI’s predictive capability aligns perfectly with the needs of investors. By tracking the LEI, investors can anticipate economic upswings or downturns, adjusting their portfolios accordingly. For example, an upward trend in the LEI might signal a forthcoming economic expansion, encouraging investors to increase their exposure to equities. On the other hand, a downward trend might suggest an economic slowdown, prompting a shift towards more defensive assets such as bonds or gold. Thus, the LEI serves as a critical tool for portfolio management and investment strategy. Policymakers, too, rely on the LEI to inform economic policy and interventions. Central banks and government agencies use the LEI to gauge the effectiveness of monetary and fiscal policies and to anticipate the impacts of economic conditions on various sectors. This foresight allows for more proactive and informed policy decisions, ranging from interest rate adjustments to government spending initiatives. By understanding and anticipating economic trends, policymakers can implement measures that support economic stability and growth. The historical performance of the LEI further underscores its value. Over decades, the LEI has demonstrated a strong track record in forecasting economic cycles, including recessions and recoveries. Analysis of past data reveals that significant changes in the LEI often precede major economic turning points by several months. This predictability enhances the credibility of the LEI as a leading indicator and reinforces its importance in economic analysis. At Eulerpool, we pride ourselves on providing accurate and timely macroeconomic data, making complex economic concepts accessible to our users. Our comprehensive LEI data allows users to monitor economic conditions and make informed decisions. We continuously update our data and refine our methodologies to ensure the highest level of accuracy and relevance. Whether you are an economist, investor, business leader, or policymaker, our platform offers the tools and insights needed to navigate the economic landscape effectively. In summary, the Leading Economic Index is a vital indicator in macroeconomic analysis, offering foresight into future economic activity through a composite measure of various economic components. Its predictive accuracy, stability, and comprehensive nature make it an indispensable tool for economists, investors, businesses, and policymakers. By integrating the LEI into their analytical frameworks, users can make more informed and strategic decisions, ultimately leading to better economic outcomes. At Eulerpool, we are committed to providing the highest quality macroeconomic data, empowering our users to stay ahead of economic trends and make smarter decisions in an ever-changing economic environment.