Kenya: PMI ticks up in April
May 5, 2016
The composite Purchasing Managers’ Index (PMI), which is produced by Markit and CfC Stanbic Bank, rose from March’s five-month low of 52.6 to 54.8 in April. Thus, the index remained 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.
April’s improvement mainly reflected that both output and new orders expanded at a faster pace than in March. While new export orders and purchasing activity also strengthened, the rate of job creation slowed. Regarding price developments, both input prices and output charges rose in April.
According to the survey report, “a common theme among panellists since the beginning of the year has been an increase in exports to neighbouring Uganda. As regional infrastructure is bolstered, through developments such as the Standard Gauge Railway, we suspect this avenue will continue to show more promise in the coming years. Its business as usual in Uganda after the conclusion of elections in February and hence Kenya’s manufacturing exports have been robust. In fact, despite the recent developments within the banking sector the CfC Stanbic PMI recovered in April, although this was the lowest April reading since data collection began back in 2014.”