The S&P Global South Africa PMI rises to 50.3

In April 2024, the S&P Global South Africa PMI rose to 50.3, marking its highest reading since February. This marginal improvement in business conditions reflects increased business confidence, leading companies to expand purchasing activity and staffing levels. Notably, firms increased their inventories at the fastest rate in over nine years, and job growth accelerated. Despite a continued decline in new orders, the rate of decrease slowed to a three-month low and was marginal. Output also fell, partly due to the elections, which paused customer spending decisions and reduced activity at some companies. However, new business from abroad rose for the first time in ten months. On the price front, both input inflation and output charge inflation accelerated.

The S&P Global South Africa PMI tracks business trends across various private sector activities, including mining, manufacturing, services, construction, and retail. A reading above 50 indicates expansion in business activity, while below 50 suggests a decline. This index provides valuable insights into the health of South Africa’s economy and its private sector.