Mozambique’s PMI rose to 51.3 in June from 50.5 in May as new sales orders accelerated for the fifth consecutive month. The increase in new business saw firms raise their employment levels and output. The pick-up in activity was broad-based, with all five sectors covered in the survey reporting an increase in output. While firms reported an increase in purchase costs, the rate of inflation softened, with selling prices rising moderately as some companies offered discounts to attract customers. More than half of the survey respondents said they were optimistic about the year-ahead outlook.
In Ghana, private sector activity expanded at a slower pace. The PMI decreased to 50.4 in June from 51.3 in the prior month as growth in output and new sales orders weakened. Positively, input prices increased at the slowest pace in three years, amid relatively stable exchange rates. This fed through to a softer increase in selling prices, with the rate of output price inflation easing for the seventh consecutive month to the weakest since February 2021. Overall, the continued improvement in business conditions saw confidence about the year-ahead outlook strengthen to the highest level this year.
Uganda’s PMI eased to 56.4 in June from 57.4 in May, but remained above the series average of 52.5, signalling that growth in private sector activity remains robust. Output and new sales orders expanded across all major sectors, with staffing levels and purchasing activity also rising as firms tried to reduce backlog orders. Most firms remained optimistic about the year-ahead outlook, with 87% of respondents predicting a further expansion in activity.
Kenya’s business conditions slipped further into contractionary territory, with the PMI falling to 47.8 in June from 49.4 in May. Both new sales orders and output contracted at a faster pace as high inflation and cash shortages dampened domestic demand. In contrast, export demand rose at the fastest pace since December 2021, boosted by the weak shilling. The June survey also showed that price pressures remained severe during the month, due to higher fuel costs and weaker currency, with firms passing on higher prices to consumers. While the year-ahead outlook improved in June, it remained weak relative to historical levels.
Positively for the inflation outlook, all four country surveys reported an improvement in supplier delivery times amid better availability of materials and competition among vendors.
