South African Private Sector Expands In March

(RTTNews) - South Africa's private sector activity recovered for the first time in six months in March despite supply chain disruptions due to the Middle East war, survey results from S&P Global showed Tuesday.

The purchasing managers' index for the private sector economy rose to 50.8 in March from 50.0 in February. A score above 50.0 indicates expansion.

Among components, output and employment both recorded larger gains, while stocks of purchases expanded for the first time in four months. The growth in output was attributed to new project starts and renewed efforts to build stocks. The rate of job creation was the strongest since May 2024.

Meanwhile, new orders showed a sharp fall in March as export orders fell at the steepest pace in just over two years. Supplier delivery times lengthened, with the rate of increase quickening to a 16-month high amid disruptions to sea freight linked to the Strait of Hormuz and associated supply bottlenecks.

On the price front, input price inflation accelerated to the highest since August 2024, led by higher fuel prices and US dollar-denominated list prices along with wage pressures. Consequently, selling price inflation also rose to the greatest extent since the end of 2024.

"Going forward, the duration of the war will be a key factor determining the extent of the impact on South African companies, including how much a drop in foreign demand and a markup in prices filter through to domestic activity," David Owen, senior economist at S&P Global Market Intelligence, said.