South Africa’s private sector experienced its fastest growth in business activity in four years during May 2025, according to the latest S&P Global South Africa Purchasing Managers’ Index (PMI). The PMI rose to 50.8 from 50.0 in April, marking the first sign of growth since November 2024.
A PMI reading above 50 indicates expansion, and the May figure reflects stronger private sector output, increased new orders, and inventory build-up amid recovering customer confidence. Output reached its highest level since May 2021, supported by new projects and rising domestic demand.
However, export orders continued to decline, though at a slower pace due to the impact of U.S. tariffs. Improved supply chains led to faster inventory restocking. Despite a slight reduction in staffing due to restructuring and vacant positions, slowed input price inflation allowed firms to lower selling prices.
Overall, optimism about future output rose to a three-month high as businesses anticipated stronger client demand and the launch of new products
