New orders boost economic activity in Mozambique in October

Mozambique's private sector activity surged in October, reaching a four-and-a-half-year high, driven by a significant increase in new orders. The Standard Bank's PMI rose from 50.2 in September to 52.7 in October, indicating improved business conditions. Production growth was noted alongside the fastest increase in purchasing activity recorded since the survey began. Despite this growth, employment declined slightly for the third time in four months due to financial viability issues. Rising production costs were attributed to higher expenses in fuel and transport. The chief economist at Standard Bank highlighted that aggregate demand is expected to be supported by advancements in natural gas projects, although risks remain regarding fiscal constraints and financing access.