The Purchasing Managers’ Index™ (PMI) survey report, drawn up monthly by Standard Bank Mozambique, pointed out that business activity in the country recorded an improvement in June compared to May, rising from 50.5 to 51.3.
According to the document, production growth in June reached the highest level of the last year, highlighted by the excellent results in attracting new customers, which contributed to a solid expansion of new orders and increased employment.
“The increase in activity was seen in each of the five sectors covered by the survey, with wholesale and retail trade standing out,” reads the analysis, which also stresses “the positive scenario despite companies reporting difficulties in financing to make acquisitions.”
In a comment on the results, the chief economist at Standard Bank Mozambique, Fáusio Mussá, said that if inflation continues to slow, the Bank of Mozambique may ease the price of money, meaning it will reduce its benchmark rates by at least 200 basis points during the first half of 2024.
“We estimate inflation at the end of 2023 to settle at 8.6 percent year-on-year and 6.8 percent at the end of 2024,” he added.
The Purchasing Managers’ Index (PMI) results from the responses of purchasing managers from a panel of about 400 private sector companies.
Values above 50 show an improvement in business conditions, while values below show a deterioration.