Africa-Press. Data from the Purchasing Managers’ Index (PMI) indicated that private sector activity in South Africa contracted in May 2026 for the first time in four months, signaling a decline in economic momentum after a period of continuous growth.
The PMI released by a local source fell to 49.6 points in May, down from 51.6 points in April, dipping below the 50-point mark that separates growth from contraction.
The report attributed this decline to rising fuel prices and increasing uncertainty related to the conflict in Iran, as well as adverse weather conditions that impacted business activity and production.
Companies recorded their first production decline in five months, while new orders fell at the fastest pace since the beginning of the year, with external demand notably weakening, particularly from African and European markets, due to rising prices and transportation costs.
The South African private sector had achieved its best performance in April in nearly four years, with the index rising to 51.6 points, supported by increased sales and exports. However, this improvement proved to be fragile in the face of inflationary pressures and rising energy prices.
Despite the current decline, the survey showed an increase in business confidence regarding the future, reaching its highest level since the beginning of 2026, with expectations for improved demand, a return to marketing and advertising activities, and stabilization of economic conditions in the coming months.
This development comes at a time when the South African economy faces increasing challenges, including rising unemployment, living costs, and energy prices, which adds pressure on the government to boost growth and stimulate investment in the largest industrial economy on the African continent.
