# South Africa Private Sector Remains Stagnant ## S&P Global South Africa PMI - February 2026 The **S&P Global South Africa PMI was unchanged at 50 in February 2026**, signaling stable private-sector business conditions for a second consecutive month after weakness in late 2025. ### Key Findings **Output and New Orders** - Output was broadly unchanged, supported by firms clearing backlogs - New orders declined slightly - The continued fall in outstanding work pointed to a weaker pipeline and a cautious near-term outlook **Employment and Inventories** - Employment rebounded with a modest rise in staffing - Inventories declined again amid restrained purchasing **Supplier Activity** - Supplier delivery times worsened slightly but delays were less severe than earlier in the year **Price Pressures** - Input cost pressures remained subdued thanks to a stronger rand and lower fuel prices - Wage inflation hit a seven-month high - Softer overall cost burdens enabled firms to lower selling prices for the first time since May 2025 **Business Confidence** - Business confidence eased to its **lowest level since July 2021**, despite expectations that easing inflation and potential rate cuts could support growth ### Context #### Previous Period (January 2026) The S&P Global South Africa PMI rose to 50.0 in January 2026 from 47.7 in December, signaling a stabilization in private-sector business conditions after a weak fourth quarter. - Output and new orders were broadly unchanged, as modest improvements in domestic demand were offset by continued weakness in services and falling export orders - Purchasing activity increased slightly on firmer demand momentum - Inventories declined as supplier delivery times lengthened for the first time in ten months due to port delays and weaker supplier performance - Backlogs continued to fall, and employment edged lower as firms reduced staff or paused hiring - Input cost inflation slowed to a three-month low, allowing selling price increases to soften to their weakest pace since October - Business confidence stayed relatively upbeat, supported by expectations of stronger demand, improved energy supply, rising tourism, and better domestic economic conditions #### Prior Quarter (December 2025) The S&P Global South Africa PMI fell to 47.7 in December 2025 from 49.0 in November, marking the fastest contraction since January. - Business activity dropped sharply amid weaker client demand and challenging economic conditions - Output fell at the steepest pace in 11 months - New orders declined again, led by reduced household spending, pullbacks in business orders, and softer export demand - Backlogs fell at the fastest rate in over five years - Firms responded by cutting purchasing activity and reducing input stocks - Employment edged higher for a third straight month due to short-term hiring - Supplier delivery times extended its record streak - Cost pressures eased slightly as input prices rose at a slower pace, prompting a softer increase in selling prices - Business confidence remained elevated, with firms expecting a recovery in activity over the year ahead on hopes of stronger demand and new projects ### Index Component Categories The Composite PMI covers private sector activity across: - Manufacturing - Services - Construction - Retail - Mining ### Data Tracking The index tracks variables such as: - New orders - Output - Employment - Supplier delivery times - Inventories - Prices **Index Interpretation:** A reading above 50 indicates expansion in business activity; below 50 indicates decline. ### Release Information - **Country:** South Africa (ZA) - **Indicator:** Composite PMI - **Period:** February 2026 - **Reference Date:** 2026-02-28 - **Release Date:** 2026-03-04 - **Source:** S&P Global - **Previous Reading:** 50.0 (January 2026) - **Forecast:** Not specified in release - **Actual:** 50.0 ### Licensing Note This is a limited sample of PMI headline data displayed under licence from S&P Global. Full historic PMI headline data and all other PMI sub-index data and histories are available on subscription from S&P Global. Contact economics@spglobal.com for more details.