S&P PMI: Mozambique’s private sector grows for 4th month

Mozambique’s private sector saw continued growth in August 2024, as the Standard Bank Mozambique PMI rose to 50.9 from 50.6 in July, marking the fourth consecutive month of expansion.

The PMI indicates a modest improvement in business conditions, driven by increased output and new orders, though job creation slowed slightly. Input prices surged to their highest level since March 2023 due to stronger demand pressures. Improved supplier delivery times facilitated better purchasing and inventory management.

Activity increased in four of the five monitored sectors, with only construction experiencing a decline. Firms expanded their workforce and purchasing volumes, contributing to reduced work backlogs. Despite rising costs, selling prices rose only marginally as companies were unable to pass on the cost increases to customers.

Fáusio Mussá, Chief Economist – Mozambique at Standard Bank, noted the PMI’s rise and ongoing economic growth, despite cost pressures and heavy reliance on the extractive sector. Mussá anticipates further interest rate cuts by the Banco de Moçambique (BOM) to support growth, despite tight financing conditions.

Attribution:  Standard Bank Mozambique PMI® 

Subediting: M. S. Salama