The growth momentum in Mozambique’s private sector increased in June, according to the PMI indicator calculated by Standard Bank, which reflects private-sector expectations about the economy.
The trend follows rapid growth in production, new orders and employment, according to the latest release of the indicator, which puts it at 52.9, the highest since November 2015.
In this analysis, figures above 50 point to an improvement in business conditions in the previous month, while below 50 show a deterioration.
According to the bank, new orders increased at the fastest pace in nearly four years as improving customer confidence and higher affluence culminated in a sharp rise in demand.
Also read: Mozambique to come out of recession, PMI index positive for the first time in over a year – Standard Bank
“As workloads increased, businesses increased their headcount at the highest pace in the past year and a half,” it said.
The scenario has another side to it, as “the most recent data also showed a sharp rise in input prices.”
The rise is due to demand for raw materials and the devaluation of the metical and production costs have therefore seen the sharpest increase in almost two years.
The Purchasing Managers’ Index (PMI) published by Standard Bank results from the responses of purchasing directors from a panel of about 400 private sector companies.