Mozambique’s private sector recorded its highest growth since August 2019, according to the latest PMI Index, which also points to a strengthening of business confidence and rising prices.
“Mozambique’s private sector economy recorded stronger growth in February, with new business rising at the fastest rate for six months,” the survey that results in the Purchasing Managers’ Index, reads.
“February saw an improvement in the headline reading to 51.6, from 50.4 in January, to signal overall growth in the Mozambique private sector. This was above the long-run average of 50.7 and the highest since last August,” the economic activity index indicates.
According to panellists, “the faster upturn was due to greater client demand, new products and increased construction activity”.
On the other hand, they add, “the introduction of new products and rising new orders helped activity to expand” with the higher production levels acting as an incentive for “firms to raise input buying, after weaker activity growth in January led to a reduction in purchases”.
The rise in orders and production also increased the confidence of businessmen, who expect an improvement in activity in the next 12 months.
“Looking ahead, business sentiment for output in 12 months’ time was up, notably in February, with many panellists buoyant that the latest improvement in demand growth will transfer to higher activity over the coming year. The degree of confidence was the strongest seen since last March,” the report says.
The index is based on a survey of the purchasing directors of about 400 companies in the Mozambican private sector, designed by the Markit consultancy.
PMI values exceeding 50 points indicate an improvement in conditions for companies in the previous month, while records below 50 show a deterioration in the index, which measures business activity and covers, among other data, figures on new orders, supplier delivery times, new hires and overall price of the means of production.
Source: Lusa via Club of Mozambique