JOHANNESBURG - South Africa's private sector returned to modest growth in July, helped by easing inflationary pressures and a recovery in business activity.
Data from S&P Global shows the Purchasing Managers' Index was 50.3 in July, signalling a slight improvement in business conditions.
Output grew for the first time in three months, supported by lower fuel costs and reduced pricing pressures.
New orders declined for a third consecutive month, while supply chain disruptions and delays linked to the conflict in the Middle East continued to affect imports.
Businesses also slowed hiring, with employment growth easing to a six-month low.
S&P Global says lower fuel prices provided some relief during July, but volatile oil markets and ongoing economic challenges continue to pose risks to the outlook.