Standard Bank South Africa’s Purchasing Managers Index (PMI) remained above 50 for the eighth month running in April, signalling the longest sequence of overall improvement in operating conditions in over four years.

However, the PMI fell to 50.3, from 50.7 in March, showing only marginal growth that was the weakest over the current expansionary sequence.

The continued improvement in the South African business climate was underpinned by a further rise in new business received, the bank said.

April also marked the sixth consecutive month of growth in new work – mainly linked to strengthening demand; although the rate of expansion slowed to a marginal pace and was the weakest since last November.

A further decline in new export orders weighed on growth of total new business. Inflows of new work spurred further growth of purchasing activity by South African private sector companies in April.

Input volumes rose for the seventh month running, and at the fastest rate in three months.

Similarly, the level of inputs held in stock increased for the sixth consecutive month and at the fastest rate since January. Suppliers’ delivery times lengthened for the fourth successive month. With new business rising only fractionally, companies could reduce the level of outstanding work in April.

Backlogs declined modestly, having been broadly stable in March.

Further, the volume of total business activity declined for the first time since July 2016, albeit at a marginal pace.

Inflationary pressures slowed further in April. The four price indices all remained above 50, signalling inflation, while three hit record lows.

The exception was staff costs which were, nonetheless, the fourth-lowest on record – only 6% of survey respondents reported increasing their wages and salaries in the latest period.

Private sector employment in South Africa increased for the tenth month running in April, the longest period of job creation in nearly four years, with firms linking recruitment to increased workloads.

However, the rate of growth slowed to only a fractional pace in April.