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Mozambique: Omicron pushes Purchasing Managers’ Index under 50
8:24 CAT | 09 Feb 2022
File photo: Lusa
The Standard Mozambique bank’s Purchasing Managers’ Index (PMI), which measures the conditions of business activity in the country, in January recorded the largest drop since September 2020, associated to the Omicron variant of Covid-19, the financial institution announced on Monday.
“Standing at 46.7, a drop compared to December’s value of 50.6, the index indicated a sharp drop in the general operating conditions [of companies], and the largest recorded fall since September 2020,” the analysis note consulted by Lusa today said.
Only PMI values above 50 indicate an improvement in conditions.
“The beginning of 2022 showed a further deterioration of the Mozambican economy,” the document reads, stressing that “the latest PMI data indicates sharp declines in production and new orders.”
“For the first time in five months, the PMI indicator fell below the neutral value of 50.0,” it added.
Company directors responding to the PMI survey justified the decline in demand and consequent decline in new business with “the new wave of cases related to the Omicron variant of Covid-19”.
Still, the outlook remains positive, with “two-thirds of companies indicating optimistic forecasts in terms of growth and will lead to a further increase in staffing levels”.
The Purchasing Managers’ Index published by Standard Bank is derived from the responses of purchasing directors from a panel of nearly 400 private sector companies.
Source: Lusa
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