Mozambique's private sector economy suffered a decline in August due to the tightening of confinement rules because of covid-19, Standard Bank announced.

In August, the Purchasing Managers' Index (calculated by the bank) dropped to 47.9, "the lowest value in the last seven months, a drop from 51.8 in July, and the first time this value has been below 50.0 in the last five months," reads the analysis. 

"The records indicate a moderate deterioration in the health of the private sector economy, as production, new orders and inventories have all suffered declines since July," it adds.

Business confidence remained strong, but the number of jobs increased at a slower pace, the document further notes.

"The companies surveyed predominantly linked the decline to the curtailment of measures to combat covid-19, including curfews, temporary business closures and the banning of social gatherings," according to Standard Bank's analysis.

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

Mozambique has a cumulative total of 1,878 deaths and 147,923 covid-19 cases, of which 92.8% recovered and 112 hospitalized.

July was the month with the highest number of deaths in Mozambique since the pandemic was declared, corresponding to the peak of the third wave, with 556 deaths - almost 30% of the total.

Lusa Agency