The S&P Global South Africa PMI fell to 50.1 in June 2025 from 50.8 in May, indicating softer growth and nearly neutral conditions in private sector activity amid renewed declines in output and new orders. Export demand weakened for the third straight month, contributing to the downturn in new business. Output levels contracted for the first time in three months, with only the services sector showing resilience. On the price front, input costs rose at a quicker pace, driven by higher purchase prices and accelerating wage inflation, especially in wholesale and retail. Still, selling price inflation remained modest, as firms sought to stay competitive and took advantage of a stronger rand to cut some prices. Looking ahead, business confidence fell to its lowest level since July 2021, amid rising concerns over domestic and global policy. Nevertheless, firms increased staffing for the second time in three months, with the pace of job creation the fastest since May 2024.
