Kenya: PMI falls into contractionary territory in April
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.