Maputo, Aug. 5, 2026 (Lusa) - Conditions for Mozambican businesses improved in July at the fastest rate in three years, with an expansion in production and new orders, lifting business confidence to its highest level since October 2022, according to the PMI index.
Standard Bank's monthly survey, to which Lusa gained access on Wednesday, concluded that the performance recorded in July reflected «robust demand supporting stronger growth in production and an increase in purchasing activity», against a backdrop in which the private sector recorded its best performance in the last three years.
«However, several companies reported that road transport from South Africa had been disrupted due to recent attacks on migrants,» the study emphasises, whilst also pointing to a worsening of inflationary pressures linked to shortages of fuel and raw materials.
In July, the Mozambique PMI rose from 50.0 (June) to 51.4 points, signalling «a fresh surge in the private sector following three months of stagnation, as well as the sharpest improvement in business conditions in exactly three years».
Last January, the PMI index reversed the growth seen at the end of 2025, falling to 50 points, before recovering to 50.2 in February and March, then falling back to 49.8 in April, before resuming its upward trend. PMI readings above 50 points indicate an improvement in business conditions compared with the previous month, whilst readings below this figure indicate a deterioration.
«New business accelerated in July, with the growth rate reaching its highest level in the last eight months. Companies attributed the recovery to increased customer demand, improved external market conditions, timely deliveries of stock and an improvement in cash flow,» the report states.
Production volumes followed this trend, recording «one of the highest rates in the last three years», as firms ramped up output to boost productivity and meet sales commitments.
«Despite the strong sentiment, employment contracted, albeit slightly, for the first time since May 2025, as companies appeared to have sufficient capacity to manage current workloads,» the study further notes.
Quoted in the report, Fáusio Mussá, chief economist at Standard Bank Mozambique, emphasises that the July PMI «reflects positive results across most of the PMI sub-indices, including production and new orders».
«However, the employment sub-index fell to a figure below 50 for the first time since May 2025, suggesting that economic growth remains fragile,» he adds.
On the other hand, he notes that the July results confirm an acceleration in inflationary pressures, with firms raising prices and margins. «The PMI data indicate that firms raised their selling prices and improved their profit margins in July, which confirms our forecasts that inflation (...) will continue to rise,» he says.
Mussá also maintains that the survey «continues to show an improvement in business prospects», highlighting that the sub-index for future expectations has risen again to its highest level in almost four years.
«This likely reflects expectations that ongoing progress on liquefied natural gas (LNG) projects will boost aggregate demand over the next 12 months,» the economist adds.
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