The Standard Bank Mozambique PMI inched higher to 50.8 in December 2019 from 50.7 in November. Output rose further and new orders growth increased at joint-softest rate for 19 months. Meantime, the rate of job creation strengthened to a 30-month high as hopes for greater business activity in the coming year were most upbeat since the end of 2017. On the price front, overall input cost inflation was broadly unchanged, while output prices dropped for the third month running, and the fastest rate on record. Looking ahead, business sentiment was the strongest in two years, mainly due to expectations of new projects and company investment. source: Markit Economics
Composite Pmi in Mozambique is expected to be 50.80 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 53.50 in 12 months time. In the long-term, the Mozambique Standard Bank PMI is projected to trend around 54.30 in 2020, according to our econometric models.
Mozambique Standard Bank PMI
The Standard Bank Mozambique PMI™ is compiled by IHS Markit from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP. The sectors covered by the survey include agriculture, mining, manufacturing, construction, wholesale, retail and services. Survey responses are collected in the second half of each month and indicate the direction of change compared to the previous month. A diffusion index is calculated for each survey variable. The index is the sum of the percentage of ‘higher’ responses and half the percentage of ‘unchanged’ responses. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted. The headline figure is the Purchasing Managers’ Index™ (PMI). The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%). For the PMI calculation the Suppliers’ Delivery Times Index is inverted so that it moves in a comparable direction to the other indices.