The PMI indicator calculated by Standard Bank Mozambique, which reflects private sector expectations about the economy, remained in positive territory during Mayafter emerging from 13 months of decline in April, the bank announced today.

"For the second consecutive month, PMI survey data indicated an expansion in the Mozambican economy," according to the analysis note, indicating a recovery of businesses from the impact of the covid-19 pandemic. 

"Production and new orders continued to grow, although at slightly slower rates compared to the initial growth recorded in April," he detailed, with the PMI index settling at 51.2 points in May, after 51.3 in April.

In this analysis, values above 50 point to an improvement in business conditions in the previous month, while values below 50 show a deterioration.

The Standard highlighted that employment increased for the first time since January and the outlook for future activity is the highest since December 2019.

Regarding prices, Mozambican companies recorded "a slight increase in acquisition costs in May, as the inflation rate fell to its lowest point in four months." 

"In contrast, the fastest increase in personnel costs has been recorded in 2021 so far, as job creation has led some companies to increase overall compensation," he concluded.

The Purchasing Managers' Index (PMI) published by Standard Bank is derived from the responses of purchasing managers from a panel of about 400 private sector companies.