Mozambique Private Sector Returns to Expansion

The Standard Bank Mozambique PMI rose to 50.9 in February 2025, up from 47.5 in January, signaling a return to growth in the private sector after four months of contraction.

Output and new orders expanded as post-election unrest subsided, improving business conditions.

Customer confidence strengthened, driving a rebound in demand, though some firms noted lingering client hesitancy.

Employment and purchasing activity increased, with input buying rising at the fastest pace since August 2024.

Supply chain disruptions persisted but showed signs of easing.

Meanwhile, input costs surged, leading to the sharpest rise in prices in nearly two and a half years.

Selling prices also increased but at a slower pace.

Business sentiment remained positive, though optimism weakened, with firms hoping for higher customer numbers and business acquisitions despite ongoing economic challenges.