Kenya: PMI hits highest reading since February in September
The Purchasing Managers’ Index (PMI)—produced by Stanbic Bank and S&P Global—soared to 51.7 in September, up from August’s 44.2. September’s result marked the best reading since February. As a result, the index broke through the 50.0 no-change threshold, signaling an improvement in business conditions in the private sector from the previous month.
September’s rebound was largely due to the resolution of uncertainty following the 9 August elections; the Supreme Court upheld the results. Output recorded the first expansion in seven months, as did new business, which recorded growth after five months of contractions. With regards to prices, the withdrawal of the fuel subsidy in September led to an acceleration in cost inflation. Output charge inflation picked up in turn. Lastly, firms’ sentiment regarding activity in the year ahead improved slightly, but remained downbeat nonetheless, capped by fears over the cost-of-living crisis. Consequently, staffing levels increased only fractionally in September.