EMPLOYMENT levels in Zambia increased in March despite a slight reduction in business activities, says Stanbic Bank Zambia Head of Global Markets Victor Chileshe.

Mr Chileshe explained that purchase prices decreased as falling demand for inputs led suppliers to reduce their selling prices.

This is according to the latest Stanbic Bank Purchasing Managers’ Index (PMI) survey.

“Firms increased their staffing levels during the month and were confident that output would expand over the coming year.”

“The lack of inflationary pressure in the private sector at the end of 2019’s first quarter paved the way for a reduction in purchase prices. While staff costs for businesses remained unchanged from the previous month, there was a modest increase in output prices, which was slower than that recorded in February” Mr Chileshe said.

He said the headline figure from the survey in March slipped below the 50.0 no-change mark, posting 48.1 from 50.4 in February.

Mr Chileshe said reductions in output and new orders played a key role in the minimal ease of business activity for March after notable improvements in February.

He however observed that companies were confident that economic conditions would improve over the coming year.

Mr Chileshe said the positive market sentiments supported the high levels of optimism among firms regarding the outlook for output. PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.