Key insights
- Zambia's private sector growth slowed in April due to material shortages, despite stronger new orders. Input costs rose due to currency depreciation, leading to higher selling prices. While business confidence is high, the contraction in output and employment suggests potential headwinds for broader economic growth. This could indirectly impact global sentiment towards emerging markets.
Investing.com -- Zambia’s private sector showed modest improvement in April, but growth slowed as material shortages led to a contraction in output despite stronger new order growth, according to the latest Purchasing Managers’ Index data from Stanbic Bank and S&P Global.
The headline PMI stood at 51.2 in April, down from 51.4 in March, marking the second consecutive month of expansion in business conditions. Readings above 50.0 indicate improvement.
New orders rose at the fastest pace in seven months, driven by stronger client demand across sectors. However, output levels contracted for the first time since March as companies reported shortages of some materials.
Employment fell for the second straight month as firms cited sufficient capacity and declining backlogs of work. The job cuts were slight and eased from March levels.
Input costs rose at the fastest pace so far in 2026 after purchase costs increased due to kwacha depreciation against the dollar. This followed three consecutive months of decreases. Companies responded by raising selling prices at the quickest rate since September 2025.
Lead times for inputs improved as firms shifted to more local vendors. Input buying increased, supporting a buildup of purchase stocks.
Business confidence reached its highest level since March 2019. Companies cited expectations of continued new order growth and hopes for greater price and exchange rate stability.
"Zambia’s private sector showed a modest improvement in April as new order growth strengthened, but output and employment dipped into contraction due to some material shortages and sufficient capacity," said Musenge Komeki, Head of Sales at Stanbic Bank.
The survey collected responses from around 400 private sector companies between April 9-24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.