Standard Bank's PMI index reveals that Mozambican business activity rose in April to 51.7, reaching "the highest levels recorded since July 2022".

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

According to the document, this was the third consecutive month that the PMI index rose.

For this survey, "a stronger rise in new business supported a faster expansion of production and a further high increase in the number of jobs". On the other hand, "the number of acquisitions fell for the first time in three months, due to some reports of cash flow problems".

"Companies remained fairly confident that activity will grow over the next year," reads the monthly Standard Bank Mozambique survey, led by chief economist Fáusio Mussá.

In the report, the chief economist also mentions "pressure on companies' cash flows", "as a result of delays in state payments and VAT refunds".

"After all, the Treasury is facing pressure from the wage reform," he concluded.