Kenya: PMI improves in April; points to expansion
May 6, 2015
The composite Purchasing Managers’ Index (PMI), which is produced by Markit and CfC Stanbik Bank, rose from March’s 53.8 to 56.2 in April. As a result, the index moved further above the 50-threshold, which points to expansion in business activity.
According to Markit, April’s increase reflects that output, new orders and employment all expanded at a faster pace than in March. New export business also picked up in April and recorded the largest gain on record. Cost pressures rose over the previous month, as purchase prices and staff costs increased, and consequently output charges increased. Markit commented that April the print shows that, ““activity is gaining solid momentum in the second quarter of the year after rather lacklustre growth in the first quarter, which could perhaps be attributed to the poor weather conditions in most parts of the country that stunted agriculture growth. […] it’s important to highlight the strongest jump in new export orders since data collection started. This is hardly surprising considering that the Shilling fell to a four-year low against the Dollar, thereby restoring competitiveness to the private sector’s exports.”