Economic indicators show recovery in Mozambique and growth in South African manufacturing

Mozambique has recorded its first recovery in business confidence in nearly two years. According to the National Statistics Institute (INE), the Economic Climate Indicator (ICE) rose to 87.8 points in the third quarter, up from 87.4 in the second quarter. This increase ends seven consecutive quarters of decline and was driven by improved demand and employment prospects. While the indicator remains below the historical average of 98.8, improvements were noted in the services, industry, and commerce sectors.

In South Africa, the manufacturing sector showed signs of growth in September as the Absa Purchasing Managers’ Index rose to 50.7, up from 45.8 in August. The new sales orders index also saw a significant jump from 40.3 to 50.8. However, manufacturers face ongoing challenges, including rising input costs and logistical difficulties at the Durban port. Despite the increase in orders, the employment index declined, and businesses continue to manage pressure from high production expenses.