Mozambique Private Sector Activity Falls to Over 4-Year Low

The Standard Bank Mozambique PMI fell to 46.4 in December 2024, down from 48.4 in the previous month.

This marked the second consecutive month of contraction and the lowest reading since August 2020, due to post-election protests.

New orders recorded the sharpest drop since June 2020, with declines reported across all monitored sectors.

Similarly, output contracted at its fastest pace in over four years.

In addition to the protests curbing demand and capacity, there were some reports that border closures led to product shortages.

Purchasing activity saw a steep fall, contributing to a solid drop in inventories.

Staffing levels also decreased.

With reduced input buying, businesses reported a further decline in purchase costs during December.

Selling prices also fell, marking the first reduction in 20 months.

Nonetheless, firms were slightly more confident about the business outlook; however, overall sentiment was still at one of its lowest levels in four years.