Kenya: PMI strengthens at the end of 2015
January 6, 2016
The composite Purchasing Managers’ Index (PMI), which is produced by Markit and CfC Stanbic Bank, climbed from November’s 53.7 to 55.5 in December, marking the highest level in eight months. As a result, the index 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, December’s improvement mainly reflects that output, new work, employment and input buying all grew at a quicker pacer compared to November. Particularly, output recorded the largest gain in 2015. Price pressures were muted in December, despite a moderate rise in output charges on the back of strengthening demand.
According to the survey report, “the private sector closed the year on a strong note […]. We expect the Kenyan economy to expand [...] in 2015, predicated on a robust performance mainly in the construction sector. Likewise, despite the ongoing challenges in the tourism sector for the most part of 2015 and erratic weather patterns that suppressed agricultural production in the first half of the year, the Kenyan private sector has weathered the storm in what we think was an incredibly challenging global environment in 2015.”