South African private sector treads water in June

South African private sector activity held steady in June, while business confidence slipped to its lowest level in nearly four years, a survey showed on Thursday, 3 July 2025.

Source: Reuters.

The S&P Global South Africa Purchasing Managers’ Index (PMI) fell to 50.1, eking out only a sliver of growth, compared with May's 50.8. Readings above 50 indicate growth in business activity, while below that signals contractions.

June saw declines in output and new orders but growth in employment and inventories.

Private-sector output levels contracted for the first time in three months, reversing May's four-year high growth rate.

New business volumes fell fractionally, marking the first decline since March, driven by ongoing weakness in export orders, which contracted for the third consecutive month.

Business confidence weakened, with optimism about future activity slipping to its lowest level in nearly four years.

"The drop in business expectations to their lowest since July 2021 shows that firms are growing increasingly nervous about the domestic and non-domestic economic outlook," said David Owen, senior economist at S&P Global Market Intelligence.

Employment was a bright spot, with staffing levels rising for the second time in three months and marking the fastest increase since May 2024, primarily driven by the service sector.

Supply-chain performance improved, with the second-quarter recovery marking the longest period of improvement in nearly nine years, attributed to reduced port disruptions and lower input demand.