Mozambique: September PMI slips to eight-month low

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Mozambique: September PMI slips to eight-month low

4:12 CAT | 24 Oct 2022

File photo: Lusa

The Mozambican Purchasing Managers Index (PMI) fell in September to 50.5, from 50.8 in August, announced Standard Bank, which conducts the survey. “Whilst remaining just above the 50.0 neutral mark, the index signalled the weakest improvement in business conditions in the current eight-month growth sequence,” the bank comments.

The decline from 50.8 in August to 50.5 in September comes amid reports of a pull-back in client demand, writes the bank, blaming inflation.

“The Mozambique PMI pointed to a further slowdown in growth across the private sector economy in September, as firms saw new business rise at the weakest pace for eight months amid slowing client demand,” the report reads.

“Survey evidence suggested that marked input cost inflation had further eroded firms’ purchasing power, whilst leading to another solid uplift in output charges,” the bank’s commentary continues.

“The rate of job creation was also tempered, as employment rose only slightly, and the least for four months,” it adds.

Despite the scenario, the Mozambican PMI remains positive (values above 50% signify an improvement in business conditions), albeit by only half a percentage point.

On the bright side, “business optimism picked up to a three-month high”.

The Purchasing Managers’ Index (PMI) published by Standard Bank is compiled from the responses of purchasing directors at nearly 400 private sector companies.