Zambia’s private sector growth hits seven-year high in September

Published 03/10/2025, 10:16
Zambia’s private sector growth hits seven-year high in September

Investing.com -- Zambian business conditions improved at the fastest pace since May 2018, according to the latest Stanbic Bank Zambia PMI data released Friday.

The headline Purchasing Managers’ Index rose to 52.2 in September from 51.2 in August, signaling a significant expansion across the private sector. Readings above 50 indicate improvement in business conditions.

Output levels increased at the strongest pace since June 2023, driven by expanding new orders and sustained demand. The growth in new sales accelerated to the fastest rate since May, with companies reporting that favorable exchange rate movements against the US dollar improved customer purchasing power.

Despite the broad-based sectoral upturn in new business, construction and wholesale & retail firms recorded decreased output in September.

Vendor performance saw the second-largest improvement in over six-and-a-half years, with shorter lead times attributed to increased supplier competition. Input buying rose at the sharpest pace since December 2017, allowing firms to build their stocks more rapidly.

On the price front, supplier and imported goods costs increased during September, following two consecutive months of declining purchase prices. Wage bills also rose amid greater employment and cost-of-living payments to workers, with staff cost inflation reaching its highest level since June 2024.

Companies raised their selling prices in response to higher costs and favorable demand conditions. The pace of charge inflation was the most marked in five months, though still below the series average.

Employment levels increased at one of the steepest rates in 2025 so far as firms sought to boost capacity, helping to further reduce backlogs of work.

Despite the current positive trends, business confidence regarding future output declined to an eight-month low in September, falling below the historical series average.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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