The skyline in Kenya

Kenya PMI March 2020

Kenya: PMI hits second-lowest reading on record in March

The Purchasing Managers’ Index (PMI)—produced by IHS Markit and Stanbic Bank—dived from 49.0 in February to 37.5 in March, marking the worst print since October 2017 and the second-lowest reading on record. Thus, it dropped further below the 50-threshold, signaling deteriorating business conditions in the private sector.

March’s downturn chiefly reflected the impact of the coronavirus pandemic on business conditions. Activity dropped sharply in March amid falling demand, while new orders decreased at a record rate, with the notable drop was coming from Europe. Consequently, employment decreased for the first time since April 2019. On the price front, input cost inflation accelerated at the quickest pace in nine months on shortages of raw materials, while output charges increased only marginally. Lastly, despite the potential economic fallout from Covid-19, sentiment among firms remained strong.

Commenting on the print, Jibran Qureishi, regional economist for East Africa at Stanbic Bank, noted:

“The sharp drop in the PMI doesn’t really come as a surprise. The negative impact from Covid-19 is quite broad based and is likely to effect various sectors across the economy. […] Arguably, there will be a notable impact on economic output this year as supply chains globally are disrupted and negative demand shocks are felt too. But of course, timing will be everything. The longer the duration, the more acute or severe the impact will be.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest