FX.co ★ South Africa Private Sector Growth Slows in June

The S&P Global South Africa PMI experienced a slight decline, registering at 50.1 in June 2025, compared to 50.8 in May, suggesting a slowing growth trajectory and nearly stagnant private sector activity. This shift is attributable to renewed downturns in both output and new orders. Export demand waned for the third consecutive month, exacerbating the decrease in new business. Output levels declined for the first time in three months, though the services sector continued to demonstrate resilience. Regarding prices, input costs increased at an accelerated rate due to rising purchase prices and heightened wage inflation, notably in the wholesale and retail sectors. Despite these pressures, inflation in selling prices remained modest, as companies aimed to remain competitive by leveraging a stronger rand to lower some prices. Looking forward, business confidence dropped to its lowest point since July 2021 amidst growing concerns over domestic and international policy issues. Nevertheless, companies expanded their workforce for the second time in three months, achieving the fastest pace of job creation since May 2024.