Kenya: PMI stable in September
October 5, 2016
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and CfC Stanbic Bank, stabilized in September after recovering for two consecutive months from June’s record low. In September, the PMI remained at August’s 53.5, resting above the 50-threshold which points to expansion in business activity. The index has been in expansionary territory since the survey was launched in January 2014.
September’s steady reading reflected that faster expansions of output, which picked up to a seven-month high, and purchasing activity were countered by the slower growth of new business. Meanwhile, new export orders increased, employment continued to rise and inventories built up in September. Regarding price developments, input prices rose modestly while output charges were stable overall.
According to the survey report, “The Stanbic PMI continued to show an improvement in business conditions in September […]. This sustained amelioration is largely on the back of a rebound from the tourism sector attributed to improved security conditions and subsequent hosting of high profile conferences. Furthermore, it’s important to highlight that panellists pointed out that new export orders rose owing to penetration into markets such as Namibia, Sudan and Ethiopia. This diversification of export markets will only serve to underpin the Kenyan private sector’s resilience.”