05.11.202507:19:43UTC+00South Africa Private Sector Contracts for 1st Time in 7 Months

The S&P Global South Africa Purchasing Managers' Index (PMI) dropped to 48.8 in October 2025, down from 50.2 in September, indicating the first contraction in private sector activity since March. Both output and new orders fell at the most significant rate in seven months, and export sales experienced their steepest decline in nearly a year. Companies quickly reduced their backlog of work, marking the fastest pace of decline in eight months, though there was a slight increase in employment. As demand weakened, firms scaled back on input purchases, and suppliers' delivery times improved at a record pace, suggesting enhanced logistics and reduced input needs. Cost pressures continued to ease, with purchase price inflation reaching its lowest level in over five years, helped by a stronger rand and sluggish wage growth. Inflation in selling prices also moderated, partly due to decreased construction costs. Despite these challenges, business outlook remained cautiously optimistic, with 34% of companies anticipating growth in output over the coming months, as opposed to 5% expecting a downturn.