The PMI index of business activity in Mozambique fell into negative territory in March, for the fourth time in five months, signaling weak economic activity, explained Standard Bank, which conducts the survey released this Tuesday, April 9.
The fall in the index in March was attributed to companies cutting inventories and shorter delivery times, which canceled out expansions in new orders and employment. In February, the index had registered a significant increase, but returned to negative territory in March, reflecting a decline in new business growth and a reduction in companies’ production volumes.
Although the March PMI index indicates weak economic activity at the end of the first quarter, some sectors, such as agriculture and services in general, recorded growth. The expectations sub-index remains in positive territory, however, climatic phenomena, coupled with delays in the implementation of liquefied natural gas projects in Cabo Delgado may alter this assessment.
