South Africa private sector growth hits 44-month high, PMI shows

The S&P Global South Africa Purchasing Managers’ Index rose to 51.6 in April from 50.8 in March. The ​50-mark separates growth from contraction. “Some comments from survey panellist ​suggested that the rise was helped by safety stock ⁠building as companies anticipated increased headwinds from the Middle East ​conflict, implying that the uplift in growth may be temporary,” said ​David Owen, senior economist at S&P Global Market Intelligence.

Output growth quickened to an 11-month high, extending the current expansion to four months. New orders ​rose for the first time in three months, and the ​increase was the strongest in just over one-and-a-half years. Export sales also picked ‌up ⁠at the fastest pace since July 2023, helped by new client wins and stronger demand from markets including Zambia and the Democratic Republic of the Congo, S&P Global said.

However, cost pressures ​intensified sharply mainly ​due to a ⁠weaker rand currency and higher international oil prices. South Africa is a net importer of petroleum ​products and is heavily exposed to fluctuations in ​global energy ⁠prices. Supplier delivery times lengthened, as freight schedules were disrupted by the war.

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Business expectations improved for the first time in five months, ⁠supported by ​strong sales pipelines, new product launches ​and export opportunities. But firms remained cautious due to rising inflation pressures and wider ​geopolitical tensions, the survey said.

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