The Standard Bank Mozambique PMI rose to 41.7 in June 2020 from the second-lowest reading of 40 in the previous month. The reading pointed to the fourth straight month of contraction in private activity, amid the extension of quarantine measures to curb the spread of COVID-19. Output and new orders fell less, while employment dropped modestly. Purchasing activity and backlogs of work also continued to decline, linked to weaker demand. On the price front, input costs dropped for the third consecutive month due to a drop in supplier prices. Output charges also decreased, mainly due to offers of discounts to clients. Finally, sentiment remained strong, due to hopes that demand will rebound once the COVID-19 threat has diminished and lockdown restrictions eased.
Composite Pmi in Mozambique is expected to be 42.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Composite Pmi in Mozambique to stand at 51.00 in 12 months time. In the long-term, the Mozambique Standard Bank PMI is projected to trend around 51.00 points in 2021 and 52.00 points in 2022, according to our econometric models.