Kenya: PMI rises to over one-year high in January
February 3, 2016
The composite Purchasing Managers’ Index (PMI), which is produced by Markit and CfC Stanbic Bank, climbed from December’s 55.5 to 56.4 in January, marking the highest level in over a year. As a result, the index again rested above the 50-threshold, which points to expansion in business activity. The index has been in expansionary territory since the survey was launched.
According to Markit and CfC Stanbic Bank, January’s improvement was fairly broad-based, with solid expansion in most key components of the indicator. Particularly, output recorded the largest expansion in over a year. According to the survey report, “2016 has begun on a solid footing, showing a similar trend to that seen towards the end of last year. The CfC Stanbic PMI accelerated to a 13-month high boosted by higher output, new orders and employment. Job creation will probably continue to remain robust in the coming months considering that backlogs of work rose at the fastest rate in the series history.” Regarding price developments, input costs recorded the smallest increase in 10 months, likely reflecting that the Kenyan shilling recently stabilized versus the U.S. dollar, following the depreciation observed in previous months. Meanwhile, output charges recorded a small increase in January.