Kenya PMI April 2022

Kenya

Kenya: PMI falls into contractionary territory in April

May 6, 2022

The Purchasing Managers’ Index (PMI)—produced by Stanbic Bank and S&P Global—fell to a three-month low of 49.5 in April from March's 50.5. Consequently, the index dropped below the 50.0 no-change threshold, signaling a deterioration in business conditions from the previous month.

April’s deterioration came as input prices rose at the fastest pace in over eight years, exacerbated by supply shortages largely stemming from the war in Ukraine. High prices dented consumers’ purchasing power, which led to a spending reduction and a fall in new orders in turn. Consequently, activity in the construction, agriculture and services sectors declined in April. Meanwhile, sentiment with regard to future activity fell to a fresh record low on concern over accelerating inflation. More positively, employment levels rose again in April, which led to a stabilization of work backlogs due to reduced demand.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 4.4% in 2022, which is unchanged from last month, and 4.7% in 2023.


Author:, Economist

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Kenya PMI April 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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