Business confidence in Africa’s copper producer Zambia, fell steeply in the month of April to a 2.5 year low. This was revealed by the Markit Purchasing Managers Index – PMI on 06 May which printed at 45.2 compared to 48.1 in the month of March. This represents the sharpest reduction in orders for six months. (Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.)
Read also: Sharpest reduction in new orders for six months
Markit Economics reported that the liquidity crunch weighed new business compounding the unemployment concerns. Private sector pulse grappled with lack of money in the economy led to steeper declines in output and new orders.
Private sector activity has deteriorated 8 months straight.
The month of April saw a challenging business environment which affected output and new orders, with a bright spot of some businesses maintaining staffing levels
Stanbic Bank Head of Global Markets – Victor Chileshe
Concerns about ongoing exchange rate weakness led to a further drop in business sentiment, which fell for the second month running and was the second-weakest since August 2016. That said, hopes of an improvement in business conditions meant that companies were still optimistic that output will rise over the coming year.