Kenya: PMI records worst reading since April 2021 in August
The Purchasing Managers’ Index (PMI)—produced by Stanbic Bank and S&P Global—fell to 44.2 in August from July’s 46.3. August’s result marked the weakest reading since April 2021. As such, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in business conditions in the private sector compared to the previous month.
August’s deterioration came as disruptions linked to the 9 August presidential elections took a toll on activity in the month. Output declined at the sharpest pace in 16 months, Moreover, new orders also contracted at a quicker pace in August, due partly to a lack of cash flow. Additionally, firms cut jobs for the third time in four months. With regard to prices, both input costs and output charges rose at the softest paces in seven months. Lastly, firms’ sentiment regarding the coming 12-month period was the third-lowest on record.