South Africa’s private sector activity expanded for the first time in months, with the S&P Global Purchasing Managers’ Index (PMI) rising to 50.5 in June from 49.6 in May.
The reading crossed the critical 50.0 threshold that separates growth from contraction, signaling a modest recovery in business conditions after a period of decline.
The improvement was driven by easing inflationary pressures, which allowed for a stabilization in input costs and a slight uptick in new orders.
This marks a notable divergence from the broader emerging market trend, where many peers continue to grapple with persistent price pressures and slowing demand.
The data provides a counter-narrative to recent global PMI releases, which have largely pointed to stagnation or contraction.
For instance, private sector activity in the euro zone contracted for a third consecutive month in June, while India’s PMI is projected to hold firm but face diverging outlooks between services and manufacturing.