Kenya: PMI decreased in October
November 10, 2016
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and CfC Stanbic Bank, decreased in Kenya from 53.5 in September to 52.0 in October, the lowest level in four months. Despite the drop, the index remained in expansionary territory, where it has been since the survey was launched in January 2014.
October’s deterioration came on the back of a decrease in domestic demand and only subdued increases in output and total new work. However, exports improved in October and increased at the fastest pace in six months. Analysts added that, “we remain cautious about agriculture output over the coming months owing to weather reports of uneven rainfall in the key food growing counties. Moreover, the slowdown in private sector credit growth also poses as a downside risk to the promise of the private sector.”
Author: Dirina Mançellari, Senior Economist