Kenya PMI April 2016

Kenya

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.”

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 9.5% in 2016, which is unchanged from last month’s forecast. For 2017, panelists expect fixed investment to grow 8.3%.


Author: Teresa Kersting, Economist

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Kenya PMI April 2016

Note: Markit Purchasing Managers’ Index (PMI) Composite Output. A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: CfC Stanbic Bank and Markit.


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