Stanbic Bank Zambia Ltd says things were extremely bad for the Zambian economy last year.
A survey conducted by Stanbic revealed that Companies in Zambia experienced damaging deterioration in business conditions up to December.
In its report called Purchasing Managers’ Index (PMI) Survey, Stanbic Bank the private sector suffered slow business growth.
“Companies in Zambia experienced a further deterioration in business conditions in December, ending a challenging second half of 2018. The rate of decline in new business continued to soften amid some signs of improving client numbers, but output fell at a faster pace,” the report read.
The Stanbic report alleged that businesses in the country continued to experience poor conditions month-on-month last year.
“The headline figure derived from the survey is the Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
At 47.8 in December, the headline PMI dipped from 48.1 in November and signaled a solid monthly deterioration in business conditions in the Zambian private sector. Operating conditions have now decreased in five successive months,” the Survey found.
“Output fell at a sharp and accelerated pace in December, with slow business and a lack of money in the economy highlighted again by panelists. The acceleration in the rate of decline in activity was recorded in spite of a slower reduction in new business. Although new orders continued to fall at a solid pace, there were some reports that customer numbers had started to improve. Meanwhile, backlogs of work declined again at the end of 2018’, read the report which was released on the first week of January 2019.