JOHANNESBURG, May 6 – South Africa’s private sector activity expanded at its fastest pace in nearly four years in April, supported by stronger sales and output as firms responded to supply risks linked to the Middle East conflict.
The S&P Global Purchasing Managers’ Index for South Africa rose to 51.6 in April from 50.8 in March, remaining above the 50 threshold that signals expansion.
The increase was partly driven by precautionary stock-building, as businesses sought to mitigate potential disruptions tied to the conflict. According to David Owen, some firms boosted inventories in anticipation of tougher trading conditions, suggesting that the current momentum may prove temporary.
Output growth accelerated to its highest level in 11 months, extending the current expansion streak to four consecutive months. New orders also returned to growth for the first time in three months, posting the strongest increase in over a year.
Export demand strengthened notably, with sales rising at the fastest pace since July 2023, supported by new business from regional markets including Zambia and the Democratic Republic of the Congo.
Despite the improvement in activity, cost pressures intensified. A weaker rand and higher global oil prices pushed up input costs, reflecting South Africa’s reliance on imported petroleum products.
Supply chain disruptions also persisted, with delivery times lengthening as freight movements were affected by geopolitical tensions.
Business confidence improved for the first time in five months, underpinned by stronger sales pipelines and export opportunities. However, firms remained cautious, citing rising inflation risks and continued uncertainty in the global environment.
