Business activity in Mozambique expanded for a second consecutive month in August, supported by increases in output, new orders, and employment, according to the Standard Bank Purchasing Managers' Index (PMI).
The monthly survey showed Mozambique's PMI rising from 51.4 points in July to 51.9 points in August, reaching its highest level since June 2022. Readings above 50 indicate an improvement in business conditions relative to the previous month. The report noted that companies remained in expansion throughout the third quarter of 2026, benefiting from stronger demand and sales, which in turn drove purchasing activity and workforce hiring.
Output recorded its fastest rate of growth in three years, while new orders expanded at the steepest pace since July 2023. Companies attributed the improvement to the acquisition of new clients, a rise in work orders, and better overall market conditions.
Among the sectors surveyed, construction posted the strongest growth in both output and new orders, though the majority of business areas registered expansion during the month. Employment also returned to growth in August after a contraction recorded in July. The survey indicated that job creation reached its highest rate since February, in line with the improvement in sales and demand.
Business expectations for the next 12 months also improved. Approximately 61% of respondents anticipated an increase in output, while fewer than 1% expected a decline, placing business optimism at its highest level since May 2022.
Companies also stepped up their purchases of inputs and inventories against a backdrop of improving supply chains. Supplier delivery times recorded their most favourable performance since March.
Quoted in the report, Standard Bank Mozambique's chief economist Fáusio Mussá said the PMI data continue to signal an improvement in the economic outlook, linked in part to progress on liquefied natural gas projects. He described a gradual recovery in economic growth as being underway, supported also by an improved supply of foreign currency in the exchange market, stemming from coal exports and foreign direct investment in the LNG sector.
Despite the positive trend in indicators, Standard Bank maintained its GDP growth forecast for Mozambique at 0.7% for 2026.
In June, Diário Económico had reported a recovery in business activity that was still considered fragile, at a time when the PMI stood at 50 points. The rise to 51.9 points in August reinforces the signals of a broadening economic recovery.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=536967
