South African business activity stabilises in January, S&P PMI shows
South Africa's private sector business conditions stabilised in January after a challenging end to 2025, as demand steadied and price pressures eased, an S&P Global survey showed on Wednesday.
The Purchasing Managers' Index climbed to a neutral 50 in January, up from 47.7 in December. PMI readings above 50 indicate growth, while those below denote contraction.
Output and new orders stabilised after a sharp drop in December, with companies noting a slight increase in new business volumes. However, the services sector remained sluggish, and total exports continued to fall.
Input buying surged at the fastest rate in four months, though supply chain disruptions resulted in longer delivery times for the first time in ten months.
Inflationary pressures eased, with overall input prices rising at their slowest pace in three months. A stronger rand also helped counteract higher salary costs, resulting in only a modest rise in selling prices.
South Africa's local currency has gained more than 3% against the dollar so far this year.
"Lower inflation, rising tourism and improved energy supply appear to have supported companies in their forecasts for 2026," said David Owen, senior economist at S&P Global Market Intelligence.
Optimism about future demand persisted, buoyed by expectations of better economic conditions and increased tourism, even though confidence dipped to a three-month low.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
The Beneficiation Academy is a certified training institution that follows all compliance legislation and is accredited with various Sector...
VISIT SHOWROOM
Sika South Africa is a trusted partner for the nation’s infrastructure, commercial, residential, and industrial sectors.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
