Kenya: Conditions improve at stronger pace in November
The Purchasing Managers Index (PMI)—produced by Stanbic Bank and S&P Global—rose to 50.9 in November, up from the prior months 50.2. As a result, the index moved further above the 50.0 no-change threshold, signaling a stronger improvement in business conditions in the private sector from the previous month.
Novembers upturn came on the back of better weather conditions and improved new order inflows supporting the expansion in output. As new business increased, Kenyan firms onboarded staff in November. Turning to prices, input costs increased steeply in November, stemming from a weaker Kenyan shilling making imports costlier and from higher taxation and transport costs. Cost inflation, however, moderated to a three-month low thanks to a fall in staff wages and a softer increase in purchase prices. Consequently, selling prices increased at a softer rate in November. Lastly, Kenyan firms remained upbeat in November, but sentiment eased from the prior months 15-month high.