Mozambique Private Sector Remains in Contraction

The Standard Bank Mozambique PMI rose to 47.5 in January 2025 from 46.4 in December, indicating a continued contraction in business conditions for the third consecutive month.

Output and new orders declined for the third month in a row, though the rate of contraction eased compared to December.

Ongoing political protests continued to disrupt economic activity, but some firms reported a slight easing of disruptions, boosting client numbers.

On a positive note, employment and purchasing activity saw modest increases in January, ending a two-month decline.

Logistics issues were partially resolved, providing vendors with greater delivery flexibility, although overall lead times still worsened.

Meanwhile, input prices continued to fall, leading to the fastest drop in selling charges in three years.

Business expectations for future output improved for the second straight month, with some firms optimistic about a return to normal economic conditions and customer growth.