Key insights
- South Africa's private sector PMI hit a 44-month high in April, driven by rising new orders amid supply concerns linked to Middle East tensions. Rising input costs led to increased selling prices, signaling inflationary pressures. While seemingly localized, supply chain disruptions and inflationary pressures globally can have a slightly negative impact on US equities by potentially contributing to broader global economic uncertainty.
Investing.com -- South Africa’s private sector expanded at its fastest pace in almost four years during April, as companies reported rising new orders amid supply concerns linked to Middle East tensions.
The S&P Global South Africa Purchasing Managers’ Index rose to 51.6 in April from 50.8 in March, marking the highest reading since August 2022. Readings above 50.0 signal improvement in business conditions.
Output volumes grew for the fourth consecutive month, reaching an 11-month high. New orders increased for the first time in three months, posting the quickest upturn in over one-and-a-half years.
Survey respondents indicated that some firms placed larger orders due to concerns about the Middle East conflict, with worries centered on anticipated price rises, transport disruptions, and supply shortages.
Input costs rose sharply in April, driven by higher fuel prices and elevated supplier charges. Approximately 22% of surveyed firms reported rising expenses since March, resulting in the fastest rate of cost inflation in 30 months.
In response to rising input costs, firms raised their selling prices for the second consecutive month. The rate of inflation reached its highest level since August 2024, with construction firms experiencing the greatest increases in both costs and charges.
Supplier delivery times lengthened for the second month, with companies reporting the greatest delays in just over one-and-a-half years. Freight schedules were disrupted by the Middle East conflict.
Employment rose for the third consecutive month, with the rate of job creation reaching its strongest level since September 2022.
David Owen, Senior Economist at S&P Global Market Intelligence, noted that some survey comments suggested the rise in orders was helped by safety stock building as companies anticipated increased headwinds from the Middle East conflict.
Data were collected from April 9-28, 2026.
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