Purchasing Managers’ Indices for several African economies rose in June, marking a return to growth as the economic drag from elevated energy costs receded.
The data suggests that private-sector activity is stabilizing after months of pressure linked to the Iran conflict and its impact on global oil markets.
Kenya and other regional economies reported similar sentiment improvements, with business confidence rising as input costs moderated.
South Africa’s PMI climbed to 50.5 in June from 49.6 in May, crossing the critical 50.0 threshold that separates expansion from contraction.
This marks the first time in months that the country’s private sector has shown broad-based growth, according to S&P Global data.
Kenya and other regional economies reported similar sentiment improvements, with business confidence rising as input costs moderated.
The rebound is closely tied to the sharp decline in global energy prices.