Africa-Press – Mozambique. Economic activity in Mozambique recorded, over the past month, its strongest growth for two years, according to the Purchasing Managers Index (PMI) issued by the Mozambican branch of the South African Standard Bank.
According to this document, “business conditions in Mozambique improved for the first time in three months during July, as activity expanded strongly in response to greater levels of new business. The rate of activity growth was the sharpest seen in two years.”
The report, which regards July as a month of recovery in economic activity, points out that employment also rose, marking the second consecutive monthly uplift.
However, “purchases and inventories of inputs both decreased. Selling charges were unchanged following back-to-back rises, as firms aimed to keep prices steady amid a benign cost environment.”
“The PMI rose from 50.2 in March to 50.5 in April, remaining above the neutral figure of 50 for the third consecutive month, but fell to 49.6 points in May and 49.1 in June, returning to positive territory in July at 50.7”, reads the document.
The document points to an improvement in business conditions compared to the previous months, while indicators below this figure show deterioration.
“The index signaled a marginal improvement in the health of the private sector economy. Firms in Mozambique enjoyed an increase in sales at the start of the third quarter, as demand conditions picked up following softness in June”, says the note.
The data also suggests that companies “expanded their output over the course of July. The rate of growth was solid and the most pronounced in exactly two years. The construction sector leads the upturn, as respondents highlighted new projects and improved productivity.”
“Output rose in all other sectors, except for wholesale and retail where total activity was stable. Higher sales led to an increase in employment across Mozambique’s private sector in July. The rise in workforce capacity helped firms to reduce their backlogs to the greatest extent in almost two years”,
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