The South African Reserve Bank’s Business Cycle Indicator (BCI) fell for the fifth consecutive month in April 2023, indicating a continued slowdown in the country’s economic activity.
- The BCI is a composite leading business cycle indicator that tracks economic trends in various sectors of the economy, including manufacturing, mining, and retail trade.
- The decline in the BCI was driven by a contraction in the manufacturing sector, which offset moderate gains in other sectors such as mining and retail trade.
- The Reserve Bank noted that the ongoing impact of the COVID-19 pandemic, as well as other structural challenges in the economy, continue to weigh on economic growth and business confidence.
- The bank also highlighted the importance of structural reforms to address these challenges and support a more sustainable and inclusive economic recovery.
View full SARB Composite Business Cycle Indicators for June 2023 here.