Kenya: PMI falls into contractionary territory in March
April 5, 2017
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and CfC Stanbic Bank, fell from 50.1 in February to a record low of 48.5 in March. The index now lies below the 50-threshold, which means business activity is contracting.
March’s result was driven primarily by a fall in output, itself a result of weak demand. Nevertheless, new orders continued to grow, albeit at the slowest rate in over three years. Backlogs of work continued to increase, which did not translate into further job creation. Input prices rose strongly, but firms chose to lower output prices in an effort to maintain market share.
Author: Christopher Mc Innes, Economist