Kenya’s private sector activity recorded a slight improvement in December following a sharp deceleration of growth in November, according to the monthly Purchasing Managers’ Index (PMI)
Output rose at the slowest rate in six months, although new order growth quickened slightly. The survey showed that higher employment supported the upturn in output, but business confidence fell to a new record low.
Additionally, the survey indicated that cost pressures increased as local manufacturers faced challenges in the acquisition of some inputs mainly due to the prolonged disruption from the pandemic. During the period under review, prices charged fell for the second month in a row.
PMI Figures
“The headline PMI in December rose slightly from 51.3 in November to 51.4 in December, to indicate another modest improvement in business conditions. The expansion was softer than those seen from July to October as the economy recovered from the COVID-19-led downturn.” According to a note from the Markit Stanbic Bank Kenya Purchasing Managers’ Index.
Data from the index also indicated that output rose at a slightly weaker pace in December and the slowest seen in the current six-month sequence of growth.
“Firms found that improved cash flow, looser restrictions and higher customer orders supported the expansion. New order growth quickened from November but remained far softer than October’s record high.” read the note.
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