The South African Purchasing Managers Index PMI® wrapped up the year on a weak note, with private sector firms reporting the first decline in business activity in four months.

S&P global's latest survey reveals that subdued demand led to stagnant sales growth and a slowdown in hiring.

The sector also faced rising inflationary pressures, with increased costs pushing firms to raise their selling prices.

As a result, the outlook for 2025 softened, with business confidence retreating from recent multi-year highs.

On a brighter side, however, supply chain pressures appeared to ease, prompting firms to increase their input purchases.

Channel Africa business reporter Innocent Semosa has more.