South Africa’s private sector activity declined in October for the first time in seven months, as renewed weakness in output and new orders weighed on business performance, S&P Global reported on Wednesday, November 5, 2025.
According to the report, the South Africa Purchasing Managers’ Index (PMI) dropped to 48.8 in October from 50.2 in September, slipping below the 50.0 threshold that separates expansion from contraction.
While supplier delivery times improved significantly and cost pressures eased slightly, overall business activity weakened. The suppliers’ delivery times subindex reached its joint highest level since data collection began more than 14 years ago, supported by reduced logistics bottlenecks and lower input demand.
However, the broader operating environment deteriorated as new orders declined at the sharpest rate since March, with several firms linking the drop to reduced customer spending power amid uncertain domestic conditions. Export sales also fell, marking the steepest contraction in nearly a year.
On a more positive note, input cost inflation continued to ease, with the survey’s purchase prices index recording the weakest increase in just over five years. This was partly attributed to the appreciation of the South African rand against the U.S. dollar, which has strengthened by around 7% year-to-date.
Despite the latest setback, business confidence remained resilient. About 34% of surveyed firms said they expect activity to increase over the next 12 months, reflecting continued optimism for recovery amid signs of improving supply conditions.
