South African Business Activity Stabilises In January As Demand And Price Pressures Ease PMI
Quidah is an online platform that connects investors with curated opportunities and expert insights on Africa’s emerging markets, while offering businesses promotional services, partnership facilitation, and market intelligence to attract capital and grow their operations.
Industries
The S&P Global South Africa Purchasing Managers’ Index rose to a neutral 50.0 in January from 47.7 in December, indicating neither expansion nor contraction in overall activity.
Output and new orders levelled off after a sharp drop in December, with firms reporting a slight improvement in new business volumes even as the services sector remained weak and export demand continued to fall.
Purchasing of inputs picked up at the fastest rate in four months, but supply chain disruptions led to longer delivery times for the first time in 10 months.
Cost pressures eased, with input prices rising at their slowest pace in three months; a stronger rand, which has gained more than 3% against the dollar so far this year, helped offset higher wage costs and kept selling price increases modest.
S&P Global senior economist David Owen said lower inflation, rising tourism and better energy supply had supported company forecasts for 2026, and while confidence dipped to a three‑month low, optimism over future demand and economic conditions persisted.
