FX.co ★ South Africa Private Sector Stabilizes in April

In April 2025, the S&P Global South Africa PMI increased to 50.0, up from 48.3 in March, marking a stabilization after experiencing four months of contraction. This improvement was primarily driven by modest recoveries in output, new orders, and employment, with several companies attributing this to increased demand and successful marketing strategies. Growth was predominantly seen in the services sector, whereas the industrial sector experienced a decline in production. A significant development was the enhancement of supplier delivery times for the first time since mid-2023, facilitated by reduced congestion at Durban's port. In response to the easing of supply chain issues, purchasing activity increased, although inventory levels experienced a slight drop. On the pricing front, there was a sharp acceleration in input cost inflation, reaching its highest in eight months, influenced by the depreciation of the rand and rising import prices. This led companies to increase their selling prices after a brief one-month pause. Looking forward, business expectations have slightly weakened, with sentiment hitting its second-lowest point in 19 months due to ongoing political and economic uncertainties. Nonetheless, 40% of companies remain optimistic about future output.