Zambia Composite PMI

Last Release

Jul 31, 2024

Actual

49.4

Units In

Points

47.9

Frequency

Monthly

Next Release

Oct 03, 2024

Time to Release

27 Days 5 Hours

Highest	Lowest	Average	Date Range	Source
54.7 Nov 2017	34.8 May 2020	48.86 Points	2017-2024	Markit Economics

The Stanbic Bank Zambia Purchasing Managers’ Index is based on data compiled from monthly replies to questionnaires sent to purchasing executives in approximately 400 private sector companies, which have been carefully selected to accurately represent the true structure of the Zambian economy, including agriculture, construction, industry, services and wholesale & retail. The panel is stratified by GDP and company workforce size. Survey responses reflect the change, if any, in the current month compared to the previous month based on data collected mid-month. A reading above 50 indicates an overall increase in that variable, below 50 an overall decrease. The Purchasing Managers’ Index™ (PMI™) is a composite index based on five of the individual sub-components with the following weights: New Orders - 0.3, Output - 0.25, Employment - 0.2, Suppliers’ Delivery Times - 0.15, Stock of Items Purchased - 0.1, with the Suppliers’ Delivery Times sub-component inverted so that it moves in a comparable direction.

Latest Updates

The Stanbic Bank Zambia PMI fell to 48.3 in August 2024, down from 49.4 in July, thus extending the current sequence of downturn to nine months. There was a renewed decline in new orders, albeit modestly, attributed to a reduction in purchasing power at customers, load shedding and higher costs. This led to a further drop in output, although the pace of contraction overall eased to a three-month low. In the meantime, employment decreased but backlogs continue to rise. On the price front, both purchase and staff costs rose further in August, but the rates of increase softened to the slowest in four and five months, respectively. At the same time, firms raised their selling prices at the weakest pace in four months. Finally, firms remained upbeat regarding the outlook for output over the coming year in August, but the degree of optimism slipped for the third month running and was weaker than the series average.