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Entrepreneurs’ and suppliers’ sentiment towards business activity in Mozambique now stands at its highest since December 2017, according to the IHS Markit consultant Purchasing Managers’ Index (PMI).
According to the index, which measures business activity in Mozambique via data collected from 400 entrepreneurs, “employment growth has increased, reaching its highest level in 30 months, in a month when optimism about business expansion next year was the highest since the end of 2017”.
This expectation, according to analysts, is explained by the “existence of new projects and the investment made by companies”.
According to the press release accompanying the report, “Mozambican private sector companies again saw a slight improvement in business conditions in December, driven mainly by a slight increase in new orders”.
The main indicator registered a score of 50.8 points, slightly above the 50.7 recorded in November.
The slight improvements in business activity and employment in December “were largely offset by slower growth in new business and inventory levels, as well as shorter lead times from suppliers”, Standard Bank’s latest PMI financial report says.
A PMI figure above 50 points indicates an improvement in conditions for companies in the previous month, while figures below 50 show a deterioration. The index measures business activity and includes data on new orders, supplier lead times, new hires and the overall price of factors of production, among other factors.Source: Lusa