The Purchasing Managers’ Index™ (PMI) survey report, prepared monthly by Standard Bank Mozambique, points out that Mozambican companies recorded an improvement last April compared to March.
According to the document, the PMI index rose from 50.9 to 51.7 last month, thus reaching its highest level since July 2022.
“The improved conditions resulted largely from a sharp increase in the inflow of new business, which recorded the largest expansion in the past nine months,” the report details.
The report states that output levels increased slightly for the third consecutive month, with the pace of expansion also rising to nine-month highs. “According to the companies surveyed, increased productivity, new customers and higher demand drove the recovery.”
It was also found that higher workloads led to a further increase in the number of jobs in April. “With no major change since March, the rate of job creation was the second fastest in a year. The increase in labor helped companies reduce their backlogs for the second month in a row.”
Commenting on the April survey report, Standard Bank chief economist Fausio Mussá said that if the PMI remained above the benchmark level of 50, it suggests that the economy continues to evidence a gradual recovery after the shock caused by Cyclone Freddy.
“Despite solid growth, the PMI shows that firms are experiencing pressure on cash flows, reflecting pressures from the wage reform on Treasuries. There are also indications that some of the pressure on corporate cash flows is a result of delayed state payments and delays in Value Added Tax (VAT) refunds,” the economist said.
Still, the source mentioned that future expectations continue to increase, which confirms Standard Bank’s forecasts that the resumption of investment in Liquefied Natural Gas (LNG) could help accelerate growth from the second half of 2023.
