The Standard Bank Mozambique PMI increased to 46.2 in July 2020 from 41.7 in the previous month. The reading pointed to the fifth straight month of contraction in private activity, but the lowest since March, amid measure restrictions to curb the spread of COVID-19. Output and new orders fell at the weakest pace in four months, while employment declined at the slowest pace since April, and modest overall. Purchasing activity and backlogs of work also continued to decline, albeit at a much weaker pace than that seen in June. On the price front, input costs dropped for the fourth consecutive month due to a drop in supplier prices. Meanwhile, output charges rose for the first time since April, mainly due to a slower downturn in sales. Finally, sentiment improved, due to plans to expand into other regions.
Composite Pmi in Mozambique is expected to be 50.30 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Composite Pmi in Mozambique to stand at 50.20 in 12 months time. In the long-term, the Mozambique Standard Bank PMI is projected to trend around 51.00 points in 2021 and 52.00 points in 2022, according to our econometric models.