The S&P Global South Africa PMI slipped to 50.3 in July 2026 from 50.5 in June, indicating a continued but marginal and slightly softer improvement in private sector business conditions. Business activity returned to growth for the first time in three months, supported by easing inflationary pressures and gains in operational efficiency.
However, new orders declined for the third consecutive month, as weak consumer demand, political protests, and competition from cheaper imports continued to weigh on sales, even as export demand rose for the second month running.
Input cost inflation eased to a four-month low and fell below its long-run average, helped by lower fuel prices and more moderate wage growth. Output price inflation also slowed, reaching its weakest pace in five months.
Employment growth moderated to a six-month low, with firms curbing hiring in response to subdued demand and ongoing supply chain disruptions. Nonetheless, business confidence picked up from June’s near five-year low.
