Net reserves increased by $1.5-billion from $17.2-billion at the end of December to $18.7-billion at the end of January, data from the Reserve Bank showed on Tuesday.

Gold reserves rose $227-million from December's $2-billion to reach $2.227-billion at the end of January.

Foreign exchange reserves hit $19.9-billion at the end of January from $18.6-billion in December.

The increase in the foreign exchange reserves reflects a combination of valuation adjustments and foreign exchange operations conducted by the Reserve Bank for its own account and on behalf of customers during a month, which saw active trading in the market, the bank said.

It noted that the increase in reserves partly reflects foreign exchange purchases arising from FDI-related transactions.

Gold reserves improved due to a higher gold price at the end of January 2006 when compared to the previous month-end.

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SA's official statistics body produces a number of key indicators, including monthly inflation and quarterly GDP figures, unemployment and population counts.

ECONOMY UPDATE Business expectations remain positive Manufacturing output up 6.2% Retail sales increase Pension fund assets exceed R1-trillion Business confidence at record high Net reserves climb to $18.7bn Govt to spend R372bn on infrastructure Jan house price growth at 14.9% Interest rates unchanged Strong new vehicle sales Manufacturing hit by strong rand SA hotels boost occupancy levels Economic growth creating jobs Producer inflation rises Inflation dampens rate cut hopes