Zambia’s manufacturing activity for the month of June marginally improved to 46.6 from 43.9 (May) as measured by Markit / Stanbic Bank Purchasing Managers Index (PMI). This was contained in the Markit Economics latest report released on its website on 05 July.
Zambia’s private sector activity was characterized by a output inflation that jumped to a 43 month high as selling prices rise faster than usual the press release stated. Currency weakness, lack of money and delays in payments from clients were cited as some of the key drivers of the index mid year.
Blips of market optimism still show in the Zambian market with 12 month forecasts of an upturn in economic conditions though sentiments remains suppressed.
Commenting on the headline PMI Global Markets Head of Stanbic Bank Victor Chileshe said:
Things are beginning to look up though the pace is hampered by a projected increase in inflation.
PMI FOR AFRICAN PEERS
Uganda – 52.7 (57.3)/ Mozambique – 52.3 (52), South Africa – 49.7 (49.3)/ Kenya – 54.3 (51.3)/ Nigeria – 54.8 (52.9)/ Ghana – 50.5 (50.6). Uganda posted the strongest manufacturing pulse as Nigeria and Kenya showed increasing momentum. South Africa’s deteriorating private sector conditions weighed business pulse in the month of June.
KEY INTERNATIONAL PMIs
Asian PMI’s were disappointing with readings of below 50 reflecting deeper concerns of global slow down. China the second largest economy printed readings of 49.4 from 50.2 in May as Hong Kong, Thailand, Japan and South Korea all below 50 reflecting the autopsy of the Sino – US impasse.
Complied by the BT Markets teams.
