This marks the first time since November 2024, that the index has reached the neutral mark, signalling a mild recovery in business conditions.

New orders, output and employment all moved into growth territory, albeit at a modest pace. New orders increased for the first time in five months, driven by larger client orders and successful marketing campaigns, although economic uncertainty continued to weigh on customer spending. Supply chains improved notably, with suppliers' delivery times shortening for the first time since June 2023, aided by eased port congestion at Durban. This led to a modest rise in purchasing activity, the first in four months, as firms sought to replenish their inventories.

However, input price pressures intensified sharply, reaching an eight-month high, largely due to a weakening rand against the United States Dollar. "Volatility in the Rand especially during the first half of April made its mark on prices," said David Owen, Senior Economist at S&P Global Market Intelligence.

Despite the better trends in activity, optimism for the year ahead dipped, with firms expressing concerns over domestic and international politics, Owen added.
---Reuters--