The Standard Bank Mozambique PMI rose to 46.5 in September 2020 from 46.1 in the previous month. The reading pointed to the seventh straight month of contraction in private activity, but the smallest since March, amid the gradual lifting of social and economic restrictions. Output contraction eased, as businesses reduced activity in line with weaker sales volumes, while new orders fell at the softest pace in this period and employment increased for first time since March. At the same time, delivery times improved, while backlogs declined at the slowest rate in the current six-month run of depletion. On the price front, input costs dropped for the sixth consecutive month, amid weaker demand for inputs and further cuts to wages. Meanwhile, output charges rose for the third straight month, due to a deterioration in exchange rates. Finally, sentiment deteriorated to a near four-year low, amid concerns over the long-run impact of the pandemic.
Composite Pmi in Mozambique is expected to be 46.40 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 50.20 in 12 months time. In the long-term, the Mozambique Standard Bank PMI is projected to trend around 51.00 points in 2021 and 53.00 points in 2022, according to our econometric models.