Kenya PMI March 2019

Kenya

Kenya: PMI edges down to the lowest in 16 months

April 3, 2019

Activity in the Kenyan private sector grew at a slightly weaker pace in March, reflected by a fall in the Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank, from 51.2 in February to 51.0 in March—the lowest print since November 2017. Thus, the index edged closer to the critical 50-point threshold that separates expansion from contraction; it has been above the mark since December 2017.

The latest reading was underpinned by a softer upturn in output, owing to weaker domestic demand. Moreover, overall growth in new orders weakened, despite a sharp rise in new business from overseas markets. The slowdown led firms to increase their in-take of workers only marginally. Meanwhile, input cost inflation softened markedly to an over two-year low; consequently, output prices remained stable from the previous month. Despite the moderation, business sentiment remained robust, climbing to the highest in more than four years on expectations on an improvement in demand.

Commenting on March’s print, Jibran Qureishi, Regional Economist E.A at Stanbic Bank stated:

"The drop in the PMI doesn’t really come as a surprise as agricultural productivity is usually weaker in the first quarter. However, in addition to this, the ongoing trade spat with neighbouring Rwanda hasn’t helped either. Nonetheless, as the long rains commence probably from April, higher output from the agriculture sub-sector is likely to underpin private sector activity."

Kenya Fixed Investment Forecast


FocusEconomics Consensus Forecast panelists expect fixed investment to grow 5.9% in 2019, which is unchanged from last month, and 5.4% in 2020.


Author:,

Sample Report

Looking for forecasts related to PMI in Kenya? Download a sample report now.

Download

Kenya PMI Chart


Kenya PMI March 2019 0

Note: Purchasing Managers’ Index. Readings above 50 indicate an expansion in business conditions while readings below 50 point to a contraction.
Source: Stanbic Bank Kenya and IHS Markit.


Kenya Economic News

  • Kenya: PMI drops to eight-month low, but remains in expansionary territory

    March 3, 2021

    The Purchasing Managers’ Index (PMI)—produced by IHS Markit and Stanbic Kenya Bank—fell to 50.9 in February, down from January’s 53.2 print.

    Read more

  • Kenya: PMI rises to three-month high in January

    February 3, 2021

    The Purchasing Managers’ Index (PMI)—produced by IHS Markit and Stanbic Kenya Bank—rose to 53.2 in January, up from December’s 51.4 and marking a three-month high.

    Read more

  • Kenya: Inflation rises in January

    January 29, 2021

    Consumer prices increased a seasonally-adjusted 0.63% over the previous month in January, moderating from the 0.98% rise logged in December.

    Read more

  • Kenya: GDP contraction softens notably in Q3

    January 27, 2021

    According to Kenya’s Statistical Institute, GDP shrank 1.1% year-on-year in the third quarter of 2020, moderating from Q2’s 5.5% contraction, which had been the first in at least a decade (previously reported: -5.7% year-on-year).

    Read more

  • Kenya: Central Bank keeps rate unchanged in January

    January 27, 2021

    At its 27 January meeting, the Monetary Policy Committee of Kenya’s Central Bank opted to keep the Central Bank rate unchanged at 7.00%, marking the sixth consecutive hold after having cut it by 125 basis points during March–April 2020. The decision to hold reflected the Bank’s assessment that the policies implemented since March 2020 have been sufficient to weather the economic impact of the health crisis.

    Read more

More news

Search form