Kenya: PMI declines in November
Private sector activity weakened slightly in November, reflected by a decline in the Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank. The index dropped from 54.0 in October to 53.1 in November, moving closer to the critical 50-point threshold that separates expansion from contraction, signaling a slower improvement in business conditions.
November’s print reflected improved demand in domestic and overseas markets, which fueled solid growth in output and new orders, albeit slightly weaker than the previous month. Backlogs of work continued to rise, although at a more tepid pace. Firms hired more workers to deal with the increase in new business, although the rate of job creation lost pace from the previous month. On the price front, input prices rose again owing to higher prices for fuel and raw materials, and an increase in staffing costs. Output prices climbed in tandem, also reflecting the roll-out of the Michuki transport laws.