Private sector business conditions in Mozambique saw significant improvement in May, marking the fastest growth in ten months, as per Standard Bank Mozambique PMI data released on Wednesday. According to the report, increased demand spurred expansions in output and new orders, while job growth picked up pace and input purchasing rose. Despite facing the highest input cost pressures since July 2023, firms remained confident about the future, resulting in a rise in output prices. The PMI, indicating business conditions, climbed from 49.9 to 50.9, signalling a modest uplift. Notably, all PMI sub-indices showed positive trends, with output and new orders reaching three-month highs. Although agriculture saw a decline, most sectors recorded expansions. Employment rose modestly, aiding in reducing backlogs. Input purchases increased, aiming to rebuild inventories after April's decline, and delivery times improved, albeit at a slower rate. Inflationary pressures accelerated, with input prices rising sharply. Output charges increased modestly, reflecting improved confidence. Output expectations rose slightly, with 47 per cent of respondents optimistic about higher demand and productivity gains.
