Kenya: PMI rebounds into expansionary territory in April
May 4, 2017
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and CfC Stanbic Bank, swung from March’s record-low of 48.5 to 50.3 in April. With the index rebounding to above the 50-threshold, this marks a return to expansion in business activity. However, the latest figure still marks the third-lowest record since the inception of the series in January 2014.
April’s upturn was driven primarily by an increase in output, underpinned by improved demand with a sharp rise in new orders and new export work. In response to higher output, firms increased their uptake of workers at a modest pace but backlogs of work remained. Input prices continued to rise. Unlike March however, firms chose to increase output prices and put the burden of adjustment on to clients amid stronger demand conditions.
Author: Nihad Ahmed, Economist