Kenya: PMI falls in May
June 4, 2015
The composite Purchasing Managers’ Index (PMI), which is produced by Markit and CfC Stanbik Bank, fell from April’s 56.2 to 55.1 in May. Despite the fall, the index remains above the 50-threshold, which points to expansion in business activity.
According to Markit, May’s decrease reflects a sharp decline in the growth rate for output as well as for input buying. In contrast, employment increased at the fastest rate since the survey began in May. Regarding cost pressures, input prices rose for the second month in a row and at the sharpest rate since July 2014. Jibran Qureishi, Economist at CfC Stanbic Bank commented that, “growth in Kenya’s private sector eased in May; however the PMI still indicated a recovery from the slowdown in the first quarter of the year. Notably, cost pressures intensified with both input and output prices rising sharply probably due to the weakness in the Shilling which increased the cost of imports for most firms.”