Kenya PMI June 2022

Kenya

Kenya: PMI falls deeper into contractionary territory in June

July 5, 2022

The S&P Global Purchasing Managers’ Index (PMI) declined to 46.8 in June, below May’s 48.2 and marking a 14-month low. Consequently, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in business conditions compared to the previous month.

June’s downturn was driven by rising price pressures exerting further pressure on client demand and leading to a sharper decline in both output and new orders. Brisker increases in fuel prices due to the war in Ukraine continued to spearhead the increase in costs, while material shortages, a strong USD and higher wages further contributed. This, in turn, led to output charges increasing at one of the strongest paces on record. Meanwhile, staffing levels were marginally reduced. Lastly, in contrast, firms’ sentiment improved for the first time in four months.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 5.5% in 2022, which is up 1.1 percentage points from last month, and 4.7% in 2023.


Author:, Economist

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Kenya PMI June 2022

Note: Purchasing Managers’ Index. Readings above 50 indicate an overall improvement in business conditions and below 50 an overall deterioration.
Source: Stanbic Bank Kenya and S&P Global.


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