FX.co ★ South Africa Private Sector Returns to Growth

The S&P Global South Africa PMI rose to 50.5 in June 2026 from 49.6 in May, indicating a return to marginal growth in the private sector. However, both output and new orders continued to decline for a second consecutive month, underscoring weak domestic demand as firms reported constrained client spending, ongoing economic uncertainty, and persistent price pressures. The services sector remained the only area to register an increase in new business. Business confidence worsened, slipping to its lowest level since July 2021 amid domestic political uncertainty and worries about the conflict in the Middle East. On the cost side, input price inflation eased sharply from May’s 46‑month high, and output price inflation also moderated, though it remained elevated due to higher fuel and shipping costs. Employment continued to grow, with firms adding both permanent and temporary staff to boost capacity, while supplier delivery times lengthened further as disruptions to imported shipments persisted.