Mozambique: Economy expanding for the second month running
FILE - Standard Bank Maputo. [File photo: Noticias]
The Purchasing Managers’ Index (PMI) indicator calculated by Standard Bank Mozambique, which reflects the expectations of the private sector about the economy, continued to inhabit positive territory during May, after emerging from a 13-month decline in April.
“For the second month running, PMI survey data indicated an expansion in the Mozambican economy during May, as businesses recovered from the impact of the COVID-19 pandemic,” the analysis note reads.
Output and new orders continued to grow, albeit at slightly weaker paces compared to the initial uplifts in April,” the note continues, with the PMI index standing at 51.2 points in May, after 51.3 in April.
In this analysis, values above 50 indicate an improvement in the conditions of companies in the previous month, while values below 50 show a deterioration.
The Standard Bank document notes that “employment rose for the first time since January, while the outlook for future activity improved to the strongest since December 2019”.
In relation to prices, “Mozambican firms reported only a slight uptick in purchasing costs in May, with the rate of inflation softening to a four-month low”. “In contrast, there was the quickest increase in staff costs in 2021 so far, as job creation led some firms to raise overall pay,” it concludes.
The Purchasing Managers’ Index (PMI) published by Standard Bank collates the responses of purchasing directors from a sample of around 400 private sector companies.