Business confidence in Mozambique deteriorated again in the second quarter of 2026, extending a consecutive decline in the country’s economic climate indicator to eight quarters, according to data released by the National Statistics Institute (INE).
The Economic Climate Indicator (ICE), which measures business confidence, recorded a further slowdown relative to the previous quarter, falling from 88.0 to 87.2 points. The result keeps the indicator below its historical average and close to the lowest levels observed in recent years.
According to INE, the decline was driven primarily by stagnant employment expectations, despite a gradual improvement in demand-side expectations. The downward trajectory in business confidence has persisted since the third quarter of 2025, when the indicator stood at 89.8 points. It fell to 88.7 points in the fourth quarter of that year, retreated further to 88.0 points in the first quarter of 2026, and has now settled at 87.2 points.
A sectoral breakdown shows that industrial production and trade continue to weigh negatively on the economic climate. Confidence in industry maintained the deteriorating trend that began in the previous quarter, while the trade sector recorded its third consecutive quarter of decline.
Moving in the opposite direction, the services sector posted a slight recovery in confidence, a trend observed since the final quarter of 2025. Despite the broader deterioration in the economic climate, demand expectations improved for the third consecutive quarter. The corresponding indicator rose from 90.7 to 91.5 points between the first and second quarters of this year, although it remains below the historical series average.
Employment expectations, meanwhile, remained unchanged for the third consecutive quarter at 80.8 points, also remaining below the historical average. INE attributed this stability to a more favourable assessment in the trade and services sectors, which offset a less positive performance in industrial production.
The indicator for price expectations on goods and services also moved favourably for the second consecutive quarter. The balance rose from 100.4 to 102.6 points, surpassing the historical average and reversing the unfavourable trend recorded since the second quarter of 2025.
The report also reveals a worsening of the constraints faced by businesses. In the second quarter, 49.8% of surveyed companies reported having faced some obstacle to their activity, up from 46.3% in the previous quarter. Industrial production was the most affected sector, with 56.9% of companies reporting difficulties, followed by services at 49.4% and trade at 43.2%.
Among the main obstacles identified by industrial companies, the most cited were a shortage of raw materials (36.7%), difficulties in accessing credit (16.7%), and competition (16.1%).
In the trade sector, the factors most frequently cited were competition (27.3%) and weak demand (25.6%), while in the services sector the most significant constraints remained competition (20.5%), low demand (19.6%), and difficulties in accessing credit (9.2%).
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/16/negocios/empresas/ine-confianca-das-empresas-cai-pelo-oitavo-trimestre-consecutivo/
