The S P Global South Africa Purchasing Managers' Index PMI rose to 50.8 in May from 50.0 in April, indicating growth for the first time since November 2024. A PMI reading above 50 indicates growth, while below 50 points to a contraction.
The index showed a marginal improvement in the private sectors health, with companies reporting increases in output, new orders and inventories.
The output subindex reached its highest level since May 2021 as firms sought to recover from a first-quarter downturn, buoyed by new projects and rising domestic orders.
Despite the positive domestic outlook, export orders continued to decline, albeit at a slower pace than in April, partly due to US tariffs impacting foreign trade.
However, improved supply chain conditions, including shorter delivery times, allowed firms to boost inventories at the fastest rate in a year.