Kenyan businesses, led by the services sector, are optimistic about consistent growth for the next 12 months, the April Purchasing Managers Index (PMI) by Stanbic Bank shows.
- According to the index, firms expanded their inventories for the third consecutive month and outstanding business increased slightly for the third time in four months.
- Expectations towards output over the next 12 months continued to recover strongly from February’s survey-record low, with overall sentiment the strongest since March 2023.
- Businesses also increased their workforces for the fourth consecutive month with the construction sector leading in hiring growth.
“Levels of outstanding work among Kenyan firms ticked higher at the start of the second quarter. April and March marked the first back-to-back growth in eight months, although the rate of expansion remained weak. Outstanding contracts increased most in the construction sector,” the survey notes.
The Stanbic Bank Kenya PMI® signalled broadly stable operating conditions across the private sector in April, as order book volumes and output levels were changed little since March. The 12-month outlook continued to rebound sharply from February’s record low, and employment growth was maintained. Average input prices fell for the first time in nearly four years, driven by a record monthly fall in purchasing costs.
The volume of new business received remained broadly stable in April, as has been the case throughout 2024 on balance, compared with 2023, when new orders fell on ten occasions.
“Private sector activity steadied in April, following a soft print in March. Output and new orders were neutral during the month as firms reported a balanced inflow of new business despite concerns from some businesses about the heavy rainfall across the country. We share these concerns and worry that growth will slow in Q2:24 because of the widespread devastation and disruptions caused by the heavy rain,’ Christopher Legilisho, Economist at Standard Bank, said.
Kenyan Private Sector Less Hopeful in 2024-PMI Survey – Kenyan Wall Street
