The S&P Global South Africa PMI slipped to 49.6 in May 2026 from 51.6 in April, falling below the 50.0 neutral mark for the first time in five months. The downturn reflected renewed contractions in both output and new orders, with new business declining for the third time in four months and at its fastest pace so far this year. The steepest pullback was recorded in the wholesale and retail sector, while services was the only sector to register growth.
Input cost inflation quickened to its highest level since July 2022, largely due to higher fuel prices. Companies responded by raising output charges, lifting selling price inflation to a 46‑month high across all sectors. Despite the softer demand environment, employment rose at the fastest rate since September 2022 as firms recruited to fill existing vacancies.
Looking ahead, business confidence improved to its highest level of 2026 to date, underpinned by robust project pipelines, planned marketing and advertising efforts, and expectations of more stable market conditions over the coming year.
