The S&P Global South Africa PMI fell to 47.7 in December 2025 from 49.0 in November, marking the fastest contraction since January. Business activity dropped sharply amid weaker client demand and challenging economic conditions, with output falling at the steepest pace in 11 months. New orders declined again, led by reduced household spending, pullbacks in business orders, and softer export demand while backlogs fell at the fastest rate in over five years. Firms responded by cutting purchasing activity and reducing input stocks, although employment edged higher for a third straight month due to short-term hiring. Supplier delivery times extended its record streak. Cost pressures eased slightly as input prices rose at a slower pace, prompting a softer increase in selling prices. Despite current weakness, business confidence remained elevated, with firms expecting a recovery in activity over the year ahead on hopes of stronger demand and new projects.
