Core Viewpoint - South Africa's composite leading business cycle indicator increased by 1.6% month-on-month in August, marking a significant acceleration from the previous value of 0.9%, and reaching the highest growth rate in 16 months since April 2024 [1] Group 1: Leading Indicator Components - The leading indicator is composed of ten sub-components, with eight contributing positively to the monthly growth [1] - Key factors driving the increase in the leading indicator include a rise in approved residential building plans and an accelerated six-month smoothed growth rate in job advertisements, both of which are seen as leading signals for future economic activity and labor market expansion [1] Group 2: Negative Contributions - Some components negatively impacted the leading indicator, notably the deterioration of the Rand/BER business confidence index and a narrowing interest rate spread, which were the main adverse factors for the month [1] Group 3: Current Economic Activity - The composite coincident indicator rose by 0.4% month-on-month in July 2025, primarily driven by growth in actual sales in wholesale, retail, and automotive trade, indicating ongoing economic expansion [1] - The lagging indicator, however, decreased by 0.1% month-on-month, with specific components and impacts not disclosed [1] Group 4: Economic Outlook - The continuous improvement of the composite leading indicator suggests a moderate recovery in the economy over the coming months, although structural challenges such as weak business confidence remain a concern [1]