---
source: S&P Global
url: https://www.pmi.spglobal.com/public
document_type: html
date_retrieved: 2026-03-17
period: February 2026
parent_publication: IHS Markit South Africa Purchasing Managers Index
indicators_covered: [Composite PMI, Output, New Orders, Employment, Prices, Business Confidence]
---

# South Africa Private Sector Remains Stagnant
## S&P Global South Africa Composite 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 Indicators

**Composite PMI Index:** 50.0 (flat from January 2026)

**Interpretation:** A reading of 50.0 indicates a neutral position—neither expansion nor contraction—representing stable business conditions across the private sector.

## Main Findings

### Output and Demand

Output was broadly unchanged, supported by firms clearing backlogs, while new orders declined slightly. The continued fall in outstanding work pointed to a weaker pipeline and a cautious near-term outlook for business activity.

### Employment and Staffing

Employment rebounded with a modest rise in staffing levels, marking a recovery from the slight decline seen in January. However, this modest improvement suggests firms are taking a measured approach to hiring amid uncertain demand conditions.

### Inventory and Purchasing

Inventories declined again for a third consecutive month amid restrained purchasing activity. This decline reflects firms' cautious stance given weak demand signals and the softer order pipeline ahead.

### Supply Chain Conditions

Supplier delivery times worsened slightly in February, but delays were less severe than earlier in the year. This suggests that while supply chain pressures persisted, they have moderated from the previous months' challenging conditions.

### Price Dynamics

**Input Costs:** Subdued cost pressures were driven by:
- A stronger South African rand
- Lower fuel prices
- Easing inflationary conditions

**Wage Pressures:** Despite easing input costs, wage inflation hit a seven-month high, reflecting ongoing labor market pressures and cost-of-living adjustments.

**Selling Prices:** Softer overall cost burdens enabled firms to lower selling prices for the first time since May 2025, providing relief to consumers but suggesting limited pricing power for businesses.

### Business Sentiment

**12-Month Outlook:** Business confidence eased to its **lowest level since July 2021**. This marked a significant deterioration in forward-looking sentiment despite hopes that:
- Easing inflation would provide relief
- Potential interest rate cuts would stimulate activity
- Improved energy supply would support operations

## Sector Coverage

The Composite PMI tracks private sector activity across a representative sample of approximately 400 companies, including:
- Manufacturing
- Services  
- Construction
- Retail
- Mining

## Context: Recent Trend

### January 2026 (Previous Month)

The PMI rose to 50.0 in January from 47.7 in December, signaling stabilization after a weak fourth quarter.

- Output and new orders were broadly unchanged
- Modest improvements in domestic demand were offset by weakness in services and falling export orders
- Purchasing activity increased slightly on firmer demand momentum
- Backlogs continued to fall as firms worked through existing orders
- Employment edged lower due to staff reductions and hiring pauses
- Input cost inflation slowed to three-month low
- Business confidence stayed relatively upbeat despite current weakness

### December 2025 (Two Months Prior)

The PMI fell sharply to 47.7 from 49.0 in November—the fastest contraction since January 2025.

- Business activity dropped sharply amid weaker client demand and challenging economic conditions
- Output fell at the steepest pace in 11 months
- New orders declined for multiple consecutive months, driven by reduced household spending, business pullbacks, and softer export demand
- Backlogs fell at the fastest rate in over five years
- Firms cut purchasing activity and reduced input stocks in response to demand weakness
- Employment edged higher for a third consecutive month, driven by short-term hiring rather than permanent expansion
- Supplier delivery times extended its record streak of delays
- Cost pressures eased slightly as input prices rose at a slower pace

## Data Series Details

**Indicator Type:** Purchasing Managers' Index (PMI)

**Frequency:** Monthly

**Data Collected From:** Representative panel of approximately 400 companies

**Variables Tracked:**
- New orders
- Output (sales activity)
- Employment levels
- Supplier delivery times
- Inventories
- Prices paid and received

**Index Methodology:** Diffusion index where:
- **Above 50** = expansion in activity
- **Exactly 50** = no change / stabilization
- **Below 50** = contraction in activity

## Currency and Units

- **Currency:** ZAR (South African Rand)
- **Unit:** Index points (50 = neutral / baseline)
- **Importance Level:** Standard economic indicator

## Source and Availability

**Parent Publication:** IHS Markit South Africa Purchasing Managers Index (now part of S&P Global)

**Full Data Access:** This represents a limited sample of PMI headline data displayed under licence from S&P Global. Complete historic PMI headline data and all other PMI sub-index data are available on subscription.

**Contact for Full Reports:** economics@spglobal.com

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*Release Date: 2026-03-04  |  Period: February 2026  |  Reference Date: 2026-02-28*