South Africa Private Sector Expands Second Month in July

South Africa's private sector experienced expansion for the second consecutive month in July, although the pace of growth decelerated. The S&P Global South Africa Purchasing Managers’ Index fell to 50.3 from 50.5 in June, indicating a slight cooling in momentum.

S&P Global Market Intelligence reported that modest growth was supported by a marginal rise in output and increased export demand. Lower input price inflation, driven by a drop in fuel prices, further aided the sector. Despite these gains, the industry faced significant headwinds, including a six-month low in employment growth and a third consecutive month of contracting new orders.

Analysts attributed the decline in orders to cautious consumer spending, protests, and a market shift toward cheaper imports. Additionally, supply chain constraints persisted, with vendor delivery times lengthening for the seventh straight month and renewed stock drawdowns affecting operations.