Zambia’s private sector rebounds in April as Purchasing Managers’ Index hits nine-month high

Zambia’s private sector showed signs of recovery in April, with the Stanbic Bank Purchasing Managers’ Index (PMI) rising to 50.9 — its highest level since July 2023.

The rebound followed a dip in March, when the PMI fell to 49.3 from 50.9 in February, indicating a temporary deterioration in business conditions.

According to the bank’s latest survey, which tracks private sector performance across the country, the April upturn was driven by modest gains in output and new orders, particularly within the manufacturing and services sectors.

“The improvement was driven by modest gains in output and new orders, led by manufacturing and services. Input costs and selling prices increased, though inflation remained below average. Firms also raised input purchases and rebuilt inventories after recent declines,” the report noted.

In March, weak client demand had triggered declines in output and new business, with the agriculture sector notably affected by a drop in orders.

Despite this, employment growth remained steady as businesses sought to manage capacity constraints.

Overall business confidence, however, softened amid lingering uncertainty over future economic prospects.

On the inflation front, pressures eased in March.

Increases in input and staff costs slowed to their lowest rates since early 2024, while selling price inflation cooled to a 19-month low as companies adjusted pricing strategies to boost demand.

Encouragingly, supplier delivery times improved for a third consecutive month in April, reaching levels last seen in September 2023.

The PMI — a widely followed gauge of private sector health — signals economic expansion when above 50 and contraction when below.

April’s rebound offers a welcome indication of resilience in Zambia’s business climate, though firms remain cautiously optimistic amid ongoing economic challenges.

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