Zambia Private Sector Returns to Contraction

The Stanbic Bank Zambia PMI dropped to 49.3 in March 2025 from 50.9 in February, signaling a renewed contraction after three months of improvement.

The decline was driven by falls in output and new orders, as firms cited weaker demand and difficulties securing business.

While manufacturing showed some resilience, agriculture saw a notable drop in orders.

Despite subdued demand, employment growth continued at a modest pace as firms managed capacity constraints, though confidence in future output softened.

On the price front, inflationary pressures eased, with purchase and staff cost increases slowing to their softest rates since early 2024.

Selling price inflation also weakened to a 19-month low, as firms adjusted pricing to boost demand.

Meanwhile, supplier delivery times improved for the third month, matching levels last seen in September 2023.

Looking ahead, businesses remain cautious, balancing cost management with efforts to sustain growth.