Connect with us

Hi, what are you looking for?

COURTESY

Kenya

Survey Notes Continued Improvement of Business Conditions in Kenya

NAIROBI, Kenya, Jul 4 -Business conditions in Kenya’s private sector continue to improve for a second month in a row.

This is according to Stanbic Bank’s Purchasing Managers’ Index (PMI) which says improvement in June was supported by further rises in output and new orders.

According to the survey, a sustained upturn in new orders provided fresh capacity pressures, leading to the first
increase in outstanding work in four months.

Firms subsequently added to their workforce numbers, although the rate of job creation slowed from the previous month and was marginal.

Purchasing of inputs also expanded during June, with firms often reporting efforts to build inventories in anticipation of higher new order inflows.

Meanwhile, suppliers’ delivery times were shortened to the greatest extents since last October.

Hiring activity also continued as firms faced a renewed increase in backlogs, while there were additional efforts to build inventories ahead of predicted sales growth.

However, concerns about further COVID-19 restrictions meant that the business outlook slipped to the second-weakest in the series history.

It is against this backdrop that the headline PMI fell from 52.5 in May to 51 in June, indicating a sustained, but weaker, expansion in the Kenyan private sector economy.

Commenting on the survey findings, Kuria Kamau from Stanbic Bank said the surveyed firms’ outlook for the economy over the next year worsened after more stringent public health restrictions were imposed on 13 counties.

Advertisement. Scroll to continue reading.

“The pace of the recovery slowed in June following the strong improvement witnessed in May when some of the stringent public health restrictions were lifted. Both domestic and export demand increased on account of higher customer numbers and increased cash circulation; but the increase was at a slower rate than in May. To meet the rising demand, firms increased their purchases, staff costs and output but at a slower rate than demand which resulted in an increase in work backlogs,” he said.

1 Comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...