By 
Zambia’s private sector activity surged in September, marking its fastest expansion since May 2018, as improved business conditions spurred output, new orders, and employment growth.
According to the latest Stanbic Bank Zambia PMI survey, the index rose to 52.2 points from 50.9 in August, signalling a solid improvement in business activity across key sectors.
The PMI reading above 50 indicates overall growth, driven by stronger demand and improved operating conditions.
Firms reported benefits from a firmer exchange rate and shorter supplier delivery times, which supported an increase in input purchases and enabled companies to build inventories at the fastest pace since 2017.
However, the expansion also came with some cost pressures.
Read more: Stanbic Bank injects US$43 million into fertiliser production drive
Rising wages and higher purchase costs pushed output prices upward, though firms remained competitive in their pricing strategies.
Employment growth accelerated during the month, helping businesses clear backlogs and meet rising customer demand.
Despite the upbeat performance, business confidence dipped to an eight-month low, reflecting some caution among firms regarding the outlook.
“Nonetheless, optimism remained broadly positive across industries, underpinned by expectations of sustained demand and continued currency stability,” according to the survey.
Across Africa, private sector trends were mixed in September.
Ghana and Mozambique saw slight slowdowns, with PMIs slipping below 50 as output and new orders weakened.
Meanwhile, Uganda, Kenya, and Zambia recorded renewed expansions supported by rising output, inventory building, and stronger employment gains.
Analysts note that moderate cost pressures and improving supply chains continue to support business confidence across the region, suggesting a generally positive trajectory for Africa’s private sector heading into the final quarter of 2025.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments