Kenya: PMI falls in May as elevated inflation weighs on demand
The S&P Global Purchasing Managers’ Index (PMI) came in at 48.2 in May, down from April’s 49.5. Consequently, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in business conditions compared to the previous month.
May’s reading was due to the sharpest fall in output in over one year and a renewed drop in employment. Moreover, new business declined for the second straight month in May, while business confidence fell to a record low and input price inflation remained at an over eight-year high, amid supply shortages and a strong U.S. dollar.