The Purchasing Managers’ Index (PMI) calculated by Standard Bank Mozambique, which reflects the expectations of the private sector about the economy, remained in positive territory during May, after emerging from a 13-month decline in April, the bank announced today.
“For the second consecutive month, data from the PMI survey indicated an expansion in the Mozambican economy”, according to the analysis note, indicating a recovery of companies in the face of the impact of the covid-19 pandemic.
“Production and new orders continued to grow, albeit at a slightly slower pace compared to the initial growth recorded in April”, the report detailed, with the PMI index standing at 51.2 points in May, after 51, 3 in April.
In this analysis, values above 50 point to an improvement in the conditions of companies in the previous month, while values below 50 show a deterioration.
The Standard highlighted that employment has increased for the first time since January and prospects for future activity are the highest since December 2019.
Also read: Mozambique to come out of recession, PMI index positive for the first time in over a year – Standard Bank
In relation to prices, Mozambican companies recorded, in May, “a slight increase in acquisition costs, with the inflation rate falling to its lowest point in four months”.
“In contrast, the fastest increase in personnel costs in 2021 has been recorded so far, as job creation has prompted some companies to raise overall pay,” it concluded.
The PMI, published monthly by Standard Bank, results from the responses of purchasing directors from a panel of around 400 private sector companies.
May was also the month with the lowest number of covid-19 cases and deaths in Mozambique since a peak of 274 deaths and more than 20,000 infections in February.
Although official figures have helped the country enter a new phase of easing restrictions last week, health authorities have asked that prevention measures continue to be adhered to, given the fear of a third wave of infections already detected in neighbouring South Africa.