LUSAKA, May 20 (Xinhua) -- Disruptions caused by COVID-19 to Zambia's economic activities has had a telling effect on local trade as the country records its sharpest fall ever in private sector business conditions, results of a survey showed.
The latest Stanbic Bank HIS Markit Purchasing Managers' Index (PMI) says unprecedented contractions were seen in the rate of employment, output and new orders while negative sentiment regarding the future was observed for the first time.
According to the index, demand for inputs also shrank at a steep pace which contributed to falls in input costs while output prices declined marginally.
The headline PMI figure sank to 37.3 in April from 44.7 in March, the lowest it has ever been since the survey began in March 2015.
Victor Chileshe, Stanbic Bank Head of Global Markets warned that the local business environment was expected to continue being negatively impacted by coronavirus in the months to come.
"The month of April recorded the largest ever rate of deterioration in business conditions because of COVID," he said in a release.
The deterioration was widely attributed to company shutdown as a result of COVID-19 with falling demand also mentioned by the participants.
"These factors contributed to record declines in both output and new orders. Almost half of all respondents indicated that their business activity had decreased over the month," Chileshe said. Enditem
