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Zambia’s private sector continued to expand modestly in June, with the Purchasing Managers’ Index (PMI) edging down to 50.3 points from May’s two-year high of 51.4, indicating only a slight improvement in business conditions.
According to the latest Stanbic Bank PMI survey released this week, output declined for the second consecutive month, largely attributed to load shedding and the national mourning period.
However, new orders recorded a further, albeit weaker, increase, with demand growth led by the services and retail sectors.
“Firms responded to higher sales with renewed hiring, marking the strongest pace of job creation in five months, alongside increased purchasing activity and stock accumulation.
“Backlogs also rose at the fastest rate since September 2024, prompting businesses to scale up capacity,” the report noted.
Input costs continued to rise, driven by higher staff wages and purchase prices. Encouragingly, overall input cost inflation eased to its lowest level in over two years.
Despite subdued business confidence, companies remained cautiously optimistic about stronger demand and exchange rate stability in the months ahead.
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