FX.co ★ South Africa Private Sector Stabilizes in January

The S&P Global South Africa PMI increased to 50.0 in January 2026, up from 47.7 in December. This reflects a stabilization in the private sector business landscape following a challenging fourth quarter. While output and new orders showed negligible change, modest improvements in domestic demand were counterbalanced by ongoing challenges in the services sector and a decline in export orders. Purchasing activity rose slightly due to stronger demand momentum; however, inventories fell as supplier delivery times lengthened for the first time in ten months, attributed to port delays and subpar supplier performance. Backlogs continued to reduce, and employment experienced a slight decrease as companies either downsized or froze hiring efforts. Regarding prices, input cost inflation eased to a three-month low, which led to a softer increase in selling prices, marking their slowest rise since October. Despite these challenges, business confidence remained relatively optimistic, buoyed by expectations of increased demand, enhanced energy supply, a rise in tourism, and favorable domestic economic conditions.