• New orders were down fractionally in August, after having risen slightly in July.
• Low customer numbers and money shortages reportedly weighed on new businesses.
• Weaker customer numbers also impacted business activity, which slightly decreased.

Stanbic Bank Zambia says its Purchasing Managers’ Index (PMI) survey indicates that business conditions in the private sector remained unchanged during August, 2022.
Bank Head of Global Markets Victor Chileshe revealed that according to the survey, Companies were helped by softer inflationary pressures, with rates of increases in both input and output prices easing.
Mr. Chileshe stated that at 50.0 in the month under review, the headline Purchasing Managers’ Index did not show any change in operating conditions for Zambian companies midway through the third quarter of the year, and this followed a marginal improvement in July, when the index posted 50.5.
He said new orders were down fractionally in August, after having risen slightly in July, as low customer numbers and money shortages reportedly weighed on new businesses, although some firms reported that softer inflationary pressures had enabled them to secure new orders.
Mr. Chileshe said it was observed that weaker customer numbers also impacted business activity, which slightly decreased, representing another turnaround from July when output had risen marginally.
He noted that activity decreased in agriculture, manufacturing and services, but increased in construction and wholesale & retail.
“Rates of inflation softened in August, with purchase prices, staff costs and output charges all increasing at weaker rates during the month. The rise in purchase costs was the slowest since January, with favorable exchange rate movements reportedly helping to limit costs. Where purchase prices rose, this was mainly linked to higher fuel and transportation costs.”
“Some firms took advantage of softer cost inflation to lower their selling prices in order to stimulate demand. As a result, charges increased at the weakest pace in the current seven-month sequence of inflation. Construction and wholesale & retail posted reductions in selling prices. A more favorable exchange rate and hopes of an improvement in economic conditions supported optimism that output will increase over the coming year.”
Mr. Chileshe explained that on a more positive note, the PMI showed that companies continued to expand their employment and purchasing activity in August, reflecting recent demand improvements and efforts to keep on top of workloads.
“The need to keep on top of orders resulted in a further increase in staffing levels during August, thereby extending the current sequence of job creation to five months. The pace of increase softened, however, and was the weakest in this period. Manufacturing, construction, wholesale & retail and services all posted rises in employment,” he indicated.