Business activity in Mozambique registered a slight slowdown in September, marking the first drop in sales in three months, according to the Standard Bank Purchasing Managers’ Index (PMI) released this Friday (3).
The report shows that Mozambique’s PMI fell to 49.4 points in September, down from 49.9 points in August, signaling a renewed contraction in private sector business conditions. Readings below 50 points indicate a deterioration in economic activity compared to the previous month, while readings above that threshold reflect expansion.
According to the document, surveyed companies reported a reduction in new orders and sales, which limited output growth. Despite this, employment remained on the rise for the fourth consecutive month, and cost pressures stayed moderate, supported by a more stable supply environment. “September represented another period of weak performance for the private sector economy,” said Standard Bank Chief Economist Fáusio Mussá, as cited in the report.
The economist noted that Mozambique’s economy has been experiencing annual GDP contractions from the last quarter of 2024 through the second quarter of 2025, reflecting a slow recovery from post-election disruptions. “We wouldn’t be surprised if third-quarter GDP data show that the economy is still in recession. However, our projections suggest that the country should emerge from this negative cycle in the fourth quarter of 2025, mainly supported by favorable base effects,” Mussá added.
The survey also notes that several companies faced a lack of orders and cash flow difficulties, while others recorded slight increases in demand — with the services sector and wholesale and retail trade contributing most to the decline in sales.
Although production increased in September, the pace of growth was the slowest in the past three months. At the same time, companies reduced their inventories of raw materials for the fifth consecutive month, indicating caution amid weak demand.
Despite the slowdown, the report highlights that business sentiment remained positive. Mozambican companies continue to be optimistic about an eventual recovery in activity over the next 12 months, underpinned by expectations of growth in new projects, hiring, and product development.
The Standard Bank PMI is one of the main short-term indicators of Mozambique’s economic performance, reflecting the activity of companies across the industry, services, and trade sectors.
Source: Diário Económico
