Business activity in Mozambique slowed slightly in September, marking the first decline in sales in three months, according to the Mozambique PMI index, measured by Standard Bank Mozambique, which fell to 49.4 points in September, after 49.9 points in August..

This performance reflects a deterioration in economic activity compared to the previous month, while values above this threshold point to expansion, signaling a further contraction in business conditions in the private sector.

During the period under review, the report explains that the companies surveyed reported a reduction in new orders and sales, which limited production growth.

"The month of September represented another period of poor performance for the private sector economy," says the document, noting that "several companies faced a lack of orders and cash-flow difficulties, while others recorded slight increases in demand, with the services sector and wholesale and retail trade contributing most to the drop in sales."

However, the report also points out that despite this slowdown, employment continued to rise for the fourth consecutive month and cost pressures remained moderate, supported by a more stable supply environment.

Commenting on the results, Standard Bank's chief economist, Fáusio Mussá, quoted in the report, said that the Mozambican economy has been registering annual contractions in Gross Domestic Product (GDP) since the last quarter of 2024 until the second quarter of 2025, reflecting a slow recovery from the effects of the post-election turmoil.

"We wouldn't be surprised if the GDP data for the third quarter shows that the economy is still in recession. Our projections indicate, however, that the country should come out of this negative cycle in the fourth quarter of 2025, supported essentially by favorable base effects," he pointed out.

(Photo DR)