Mozambique: Government needs 42 million dollars to implement projects in Niassa - AIM
File photo: Lusa
The Mozambican business activity Purchasing Managers Index ( PMI ) dropped in May due to a contraction in job creation, which fell to the lowest value in the last three months, according to the Standard Bank, which conducts the survey.
“Standard Bank’s PMI fell slightly to 52.4 in May, compared to the 52.9 recorded in April, with job creation falling to the lowest value in three months,” says Fáusio Mussá, chief economist at Standard Bank Mozambique, in the review note.
Even so, the PMI index remains in positive territory: values above 50 points point to an improvement in the conditions of companies, while values below 50 show a deterioration.
“The overall PMI, which, although volatile, has remained above the reference value of 50 since February, suggests that the economic recovery continues, supported by the easing of restrictions associated with the pandemic and by a high performance in agriculture,” Mussá adds.
Growth prospects have even improved, with GDP forecast to rise by 3.4% this year, up from the March forecast of 2.8%.
“For now, output growth and aggregate demand appear to be strong enough to offset the negative impact of heightened price pressures and tighter monetary policy,” Mussa concludes.
The Purchasing Managers Index (PMI) published by Standard Bank collates the responses of purchasing directors from a panel of nearly 400 private sector companies.
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.