The S&P Global South Africa PMI inched up to 50.5 in August 2026 from 50.3 in July, indicating a modest improvement in private sector conditions. The slight upturn was underpinned by a return to growth in new orders, which rose for the first time in four months—though only marginally—as customer finances improved.
Export sales, however, increased only slightly and fell to a three-month low, with ongoing economic headwinds and domestic political uncertainty continuing to dampen external demand. The recovery in new business helped to lift output and purchasing activity, but sustained cost pressures led to a renewed drop in employment, marking the first decline in seven months.
On the price front, input cost inflation quickened in August but remained well below its peak in May. Firms also raised output charges at a solid pace: price increases were somewhat stronger than July’s five-month low, yet still below the long-run average. Looking ahead, South African businesses reported stronger confidence about future activity levels.
