JOHANNESBURG, April 7 – South Africa’s private sector returned to modest growth in March, as gains in output and hiring offset declines in export demand and business confidence linked to geopolitical tensions.
The Purchasing Managers’ Index compiled by S&P Global Market Intelligence rose to 50.8 in March from 50.0 in February, moving back above the 50-point threshold that signals expansion.
Business activity was supported by the fastest increase in output in six months, driven by new project activity and inventory restocking. Firms also expanded hiring at the quickest pace since May 2024 as they built capacity to meet anticipated demand.
However, underlying conditions remained uneven. New orders declined for a second consecutive month, while export sales recorded their steepest drop in more than two years, reflecting weakening external demand.
David Owen said the data points to a split trend across the economy, with domestic activity showing resilience even as external pressures intensify.
Business confidence deteriorated further, with sentiment falling to its lowest level since July 2021 as firms expressed concern over the duration and impact of the Middle East conflict. Still, around one-third of surveyed companies expect output to increase over the next year.
The data highlights a fragile recovery path, with domestic momentum helping to sustain growth even as global uncertainty continues to weigh on trade and sentiment.
