Kenya: PMI rises to 10-month high in November
The IHS Markit Purchasing Managers’ Index (PMI) came in at 53.0 in November, up from October’s 51.4. November’s result marked the strongest reading since January. As a result, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
November’s improvement was largely attributed to a sharp increase in both output and new orders, as the lifting of the nationwide curfew in late October spurred client demand. Notably, the construction, services and wholesale and retail sectors witnessed the strongest improvement in activity. Meanwhile, in a bid to keep up with rekindled demand, firms increased their staffing levels at the sharpest rate in two years. On the price front, supply-side disruptions, exchange rate weakness and higher costs for fuel and wages pushed input cost inflation higher. In response, businesses hiked their selling prices in an attempt to protect margins.