South Africa’s private sector expanded at its fastest pace in 44 months in April, according to the latest S&P Global Purchasing Managers’ Index (PMI). The index climbed to 51.6 from 50.8 in March, marking the fastest expansion since August 2022 and remaining above the 50-point growth threshold. Businesses reported improved output, a rebound in new orders, and increased export sales to countries including Zambia and the Democratic Republic of the Congo. However, economists warned that some of the growth may have been fueled by companies stockpiling goods amid concerns over disruptions linked to the Iran conflict. In contrast, rising oil prices and a weaker rand sharply increased operating costs, while freight delays disrupted supply chains. While business expectations improved for the first time in five months, firms remain cautious over rising inflation and broader geopolitical tensions.
Reuters
