South Africa Private Sector Stabilizes in January

The S&P Global South Africa PMI rose to 50.0 in January 2026 from 47.7 in December, signaling a stabilization in private-sector business conditions after a weak fourth quarter. Output and new orders were broadly unchanged, as modest improvements in domestic demand were offset by continued weakness in services and falling export orders. Purchasing activity increased slightly on firmer demand momentum, while inventories declined as supplier delivery times lengthened for the first time in ten months due to port delays and weaker supplier performance. Backlogs continued to fall, and employment edged lower as firms reduced staff or paused hiring. On prices, input cost inflation slowed to a three-month low, allowing selling price increases to soften to their weakest pace since October. Despite challenges, business confidence stayed relatively upbeat, supported by expectations of stronger demand, improved energy supply, rising tourism, and better domestic economic conditions.