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Mozambican entrepreneurs saw a slowdown in production levels in October 2019 for the first time in the last 15 months, and companies’ performance worsened generally compared to September, according to the Purchasing Managers’ Index (PMI).
According to the PMI, Mozambican businesses saw a further slowing in private sector growth in October, as new work rose at only a marginal pace, leading firms to cut output levels for the first time in 15 months.”
According to the document sent to Standard Bank customers, which Lusa has seen, “Job numbers rose, but only slightly, while output charges were reduced at the quickest rate recorded in the series history.”
“The headline PMI decreased from 51.1 in September to 50.3 in October, indicating only a marginal improvement
in private sector business conditions,” the report said. It was the lowest reading since April, as firms saw a weakening of growth momentum at the start of the final quarter of 2019.
“Activity levels were restrained in October, with latest data signalling a fractional decline in output at Mozambican
businesses,” reads the reports, with some entrepreneurs citing a lack of raw materials, an easing in new order growth and national elections as the reason for market conditions.
“Concurrently, the level of new work received by Mozambican firms rose marginally, indicating the weakest rate of growth for nearly a year-and-a-half,” the document adds.
According to Standard Bank chief economist Fáusio Mussá, “several metrics indicate that economic activity remains subdued, a situation that is only likely to improve gradually next year as the natural gas projects investment gains momentum.”
PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration, The index measures business activity and includes data on new orders, supplier delivery times, new hires and overall price of the means of production, among other items.Source: Lusa