The S&P Global South Africa PMI held steady at 50 in February 2026, indicating unchanged private-sector operating conditions for a second consecutive month, following a period of weakness in late 2025. Output was broadly flat, supported by firms working through existing backlogs, while new orders recorded a slight decline. The continued reduction in outstanding business signaled a softening pipeline and a cautious outlook for the near term.
Employment picked up, with a modest increase in staffing levels, even as inventories fell again amid restrained purchasing activity. Supplier delivery times lengthened slightly, though delays were less pronounced than earlier in the year.
Input cost pressures remained muted, helped by a stronger rand and lower fuel prices, despite wage inflation rising to a seven-month high. The overall easing in cost burdens enabled firms to reduce selling prices for the first time since May 2025. Business confidence weakened to its lowest level since July 2021, although firms still anticipated that moderating inflation and potential interest rate cuts could provide support to future growth.
