Business activity in the country fell slightly in March, dropping from 50.9 points in the previous month to 50.2 points..

The data is contained in the PMI (Purchasing Managers' Index) report released this Tuesday (08) by Standard Bank Mozambique, highlighting that despite this decline, activity remained in positive territory, reflecting a gradual recovery after the post-election instability.

"Despite the slowdown, operating conditions in Mozambique continued to improve for the second consecutive month, driven by the increase in sales that fostered an additional rise in business activity," reads the document to which the MZNews had access to.

In addition, the report points out that companies have increased their input purchasing activity and expanded their stocks of means of production, indicating "an ongoing effort to ensure the continuity and expansion of their businesses".

In terms of sectoral performance, the report indicated that the services, wholesale and retail trade and agriculture sectors grew, while construction and the secondary sector declined. The recovery was supported by an increase in order books, which allowed companies to expand their activities for the second month in a row.

Commenting on the results, Standard Bank Mozambique's chief economist, Fáusio Mussá, believes that despite the positive records in the PMI index, the country's Gross Domestic Product (GDP) growth should have remained in negative territory in the first quarter of 2025. Even so, the economist reinforces his forecast of "a slow recovery from the second quarter of 2025", with moderate growth after the protests and disturbances that followed the October 2024 elections.

(Photo DR)