FX.co ★ South Africa Private Sector Posts Slight Expansion

The S&P Global South Africa PMI nudged up to 50.2 in September 2025 from 50.1 in August, indicating a fifth successive month of marginal growth. Both output and new orders experienced further expansion, with regional demand playing a pivotal role in counterbalancing diminished inflows from the US and Europe. For the first time since March, export orders saw an increase. There was a modest rise in purchasing activity, while suppliers experienced reduced delivery times for the sixth consecutive month due to improved material availability. Cost pressures showed signs of easing, with input prices escalating at their slowest pace in 11 months, aided by a stronger exchange rate and a reduction in workforce sizes. The rate of selling price inflation dropped to its lowest in four months, as businesses opted to share savings with their customers. On the employment front, workforce numbers fell for the second month in a row, primarily attributed to challenges in staff replacement, despite the rise in backlogs for the first time in over a year. Business confidence took a hit, with optimism about future output reaching its lowest since July 2021.