JOHANNESBURG, March 4 (Reuters) - South Africa's private sector activity held steady in February, with the Purchasing Managers' Index holding at 50.0 for the second straight month, an S&P Global survey showed on Wednesday.
While output was stable, however, total sales volumes dipped, prompting firms to reduce order backlogs to sustain activity levels.
Business optimism fell to its lowest since July 2021, with future output projections subdued due to a lack of new orders and caution about the economic
outlook.
"Private sector conditions remained steady in February, as domestic companies indicated that they had secured enough work to keep business activity ticking along smoothly," said David Owen, Senior Economist at S&P Global Market Intelligence.
However, he noted that "a shortage of order intakes made some firms hesitant to predict an expansion in activity over the next 12 months."
Employment saw a positive turn, with firms increasing staffing numbers after a slight reduction in the previous period.
Input price inflation remained mild, allowing businesses to lower selling prices for the first time since May 2025. This was attributed to a stronger rand against the U.S. dollar and lower fuel prices, which helped moderate cost pressures.
Supplier delays persisted, though they were less severe than earlier in the year. Firms continued to manage inventories cautiously, with stocks decreasing for the third month in a row.
(Reporting by Johannesburg bureau; Editing by Hugh Lawson)
