The S&P Global South Africa PMI edged up to 50.3 in July 2025 from 50.1 in June, indicating a marginal improvement in private sector business conditions. This was driven by renewed new order growth and faster employment gains, with firms citing stronger client activity in services and retail, despite ongoing weakness in industry and construction. Output was broadly unchanged, but supply chains continued to stabilize, supporting modest increases in purchasing. Backlogs fell at the quickest pace since February, allowing some firms to reduce inventories. Export demand, however, declined for the fourth consecutive month. On the cost side, input price inflation accelerated to a three-month high, still, output prices rose only modestly, as firms appeared cautious about passing on full cost increases. Business sentiment rebounded from June’s near four-year low, with firms more hopeful about future demand and new projects, though confidence remained below the 2024 average.