The S&P Global South Africa PMI fell to 48.8 in October 2025 from 50.2 in September, marking the first contraction in private sector activity since March. Output and new orders declined at the fastest pace in seven months, while export sales dropped at the sharpest rate in nearly a year. Firms reduced backlogs of work at the quickest pace in eight months, even as employment rose slightly. Input purchases fell amid weaker demand, while suppliers’ delivery times improved at a joint-record pace, reflecting smoother logistics and lower input needs. Cost pressures moderated further, with purchasing price inflation at the softest level in over five years, aided by a stronger rand and subdued wage growth. Selling price inflation also slowed, partly due to falling construction costs. Despite these challenges, business sentiment remained cautiously positive, with 34% of firms expecting output growth in the coming months, compared with 5% anticipating a decline.