JOHANNESBURG, Mar 4 – South Africa’s private sector activity remained stable in February, with the headline Purchasing Managers’ Index unchanged at 50.0 for a second consecutive month, according to a survey by S&P Global.
A reading of 50 signals that business conditions neither expanded nor contracted during the month. While overall output levels were maintained, total sales volumes declined, prompting firms to draw down order backlogs to sustain operations.
Business confidence weakened notably, with optimism falling to its lowest level since July 2021. Survey respondents cited subdued new order inflows and lingering concerns about the broader economic outlook as key factors limiting expectations for growth over the next year.
According to David Owen, Senior Economist at S&P Global Market Intelligence, companies reported having secured enough work to keep activity stable in the short term. However, a shortage of fresh orders made some firms reluctant to forecast expansion over the coming 12 months.
On the employment front, conditions improved modestly. Companies increased staffing levels following a slight decline in the previous reporting period, signaling cautious workforce rebuilding.
Cost pressures also remained contained. Input price inflation was mild, enabling firms to reduce selling prices for the first time since May 2025. The easing was partly attributed to a stronger rand against the US dollar and lower fuel prices, which helped moderate imported cost pressures.
Supplier delivery delays persisted but were less severe compared with earlier in the year. Meanwhile, firms continued to manage inventories conservatively, with stock levels declining for the third straight month.
The latest PMI data suggests that while South Africa’s private sector is holding its ground, sustained growth will likely depend on stronger demand conditions and improved business confidence in the months ahead.
