A survey on Tuesday, 7 April 2026 showed that South Africa's private sector returned to a growth path in March, as a sharp output and hiring decline was offset by a decline in export orders and business confidence linked to the US-Israeli war in Iran.
The S&P Global South Africa Purchasing Managers' Index (PMI) rose to 50.8 in March from 50.0 in February. PMI readings above 50.0 indicate growth, while readings below that indicate contraction.
Supported by new projects and stock replenishment, production grew at the fastest pace in six months.
But new orders declined for the second consecutive month and export sales recorded their steepest decline in more than two years.
“The latest data shows a bifurcated trend in the South African private sector,” said David Owen, senior economist at S&P Global Market Intelligence.
Employment grew at the fastest rate since May 2024 as companies built capacity for new projects.
Business confidence further weakened as concerns grew over the severity and duration of the Middle East war. Positive sentiment fell to its lowest level since July 2021, although about 32% of companies still expect output to increase next year.
“The duration of the war will be a key factor determining the extent of the impact on South African companies, including how much of the decline in foreign demand and price increases is offset through domestic activity,” Owen said.
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