By Ukumbi Afrika Wednesday, 5th August 2026
Johannesburg– South Africa's private sector remained in expansion territory for a second consecutive month in July, although growth eased slightly as softer hiring and continued inventory reductions offset a modest rebound in business activity.
The latest S& P Global South Africa Purchasing Managers' Index (PMI) slipped to 50.3 in July from 50.5 in June, remaining just above the 50-point threshold that separates expansion from contraction.
The survey showed employment growth slowed to its weakest pace in six months despite the first increase in outstanding business since September last year. Supply chain pressures also persisted, with vendor delivery times lengthening for a seventh consecutive month, although the disruption was the mildest since February.
Demand conditions remained challenging. New orders declined for a third straight month as cautious consumer spending, protests, and customers opting for cheaper imported goods continued to weigh on sales. Export orders, however, offered some relief by increasing for a second consecutive month, though the pace of growth moderated from June.
Businesses experienced some easing in cost pressures during July. Lower fuel prices helped slow input cost inflation and reduced second-round wage pressures, giving companies greater room to stabilise operations.
According to David Owen, Principal Economist at S& P Global Market Intelligence, the easing in cost pressures contributed to a modest recovery in business activity, although weak customer demand and difficult trading conditions continued to limit sales growth.
Output expanded for the first time in three months, bringing an end to a two-month period of contraction, though the improvement was only marginal.
The latest PMI data suggests South Africa's private sector continues to recover gradually, but persistent weak domestic demand and cautious consumer spending remain significant obstacles to stronger economic growth.
Source: Reuters
Reporting: Johannesburg Bureau
Editing: Toby Chopra