South Africa economic indicators show mixed trends in September

South Africa experienced divergent economic shifts in September 2026. Business confidence, measured by the South African Chamber of Commerce and Industry (SACCI), declined from 135.1 points in August to 134.3 points in September. This dip was primarily attributed to rising energy costs and uncertainty regarding international energy prices, though the index remains higher than the previous year.

In contrast, food and non-alcoholic beverage inflation slowed to 1.2% year-on-year, providing some relief to household budgets. While cereal products and fruits saw price decreases, seafood emerged as a significant outlier with an 8.0% annual price surge.

The manufacturing sector also showed signs of recovery, with the Absa Purchasing Managers' Index rising to 50.7 points in September, crossing the threshold from contraction to expansion for the first time since May. However, broader inflationary pressures remain due to significant increases in fuel and electricity tariffs.