BankservAfrica said its PayInc Economic Index fell 0.9% month on month in June to 102.4, the lowest level since November 2025, after a revised 2.0% decline in May. The gauge of South African economic activity was still 2.5% higher than a year earlier in June 2025, but the report cited persistent uncertainty that has dented business and consumer confidence.
The back‑to‑back monthly drops point to fading momentum at the end of the second quarter, suggesting softer domestic demand and caution in spending and investment. While the year‑on‑year increase indicates the economy remains above last year’s trough, the weaker short‑term trend underscores the sensitivity of activity to confidence shocks.
The trajectory of the PayInc index over the next few months, alongside upcoming business and consumer confidence surveys and official second‑quarter growth data, will show whether June’s slump deepens or stabilises. Readings on retail trade and manufacturing output will be key to confirming whether the loss of momentum is broadening.
For more detail, read the full announcement.