Private sector momentum for the Zambian economy is at a 31 month high for the month of September as measured by the Stanbic Bank Purchasing Managers index at 54. A PMI above 50 signals and expanding economy while that which below 50 signals a contraction. Zambia’s has recorded 4 months of consecutive growth as the economy gears up to bullish recovery. Business tempo has risen and is still rising, manufacturing output on the climb and because of this corporates are taking on additional workforce to match the production appetite from new orders. Previous months PMI was 51.8 while the month of July recorded a 52.5.
Power generation has significantly improved that manufacturing and mining activity is on the uptick especially at a time copper is trading for 34% highs at $6,568 per metric ton on the London Metal Exchange. Inflation levels are fairly low contributing to stability in prices. In the recent September Central Statistics Office – CSO report, Dr. John Kalumbi Director Census said the economy had posted a 3.2% growth rate in Q2: 2017 on account of power generation improvements. Zambia is forecast to grow by a quantum of 4.3% this year while moving onto 5.1% in 2018. With monetary policy easing of 450bps cut in benchmark rates the private sector has started to reflect the benefits of expansionary monetary policy.
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