Kenya: PMI rises in August
September 3, 2021
The IHS Markit Purchasing Managers’ Index (PMI)—produced by IHS Markit and Stanbic Kenya— rose to 51.1 in August from July's 50.6. As a result, the index moved further above the 50-threshold, signaling a faster improvement in operating business conditions in the Kenyan private sector from the previous month.
August’s acceleration was largely attributed to a quicker expansion in new orders, amid released pent-up demand. Against this backdrop, firms expanded output— albeit at the slowest pace in four months—and hiked their employment levels, also in light of rising backlogs. Moreover, in order to respond to higher demand firms stepped up their purchasing activity, also increasing their stockpiles.
On the price front, input cost inflation eased markedly over the prior month, resulting in the weakest increase in selling prices in 2021. Lastly, sentiment deteriorated notably in the surveyed month, as pandemic-related uncertainty dampened outlook expectations.
Author: Alexandros Petropoulos,