NAIROBI, Kenya, Oct 3 – Private sector activity in Kenya deteriorated slightly last month, weighed down by weak new orders and output linked to low consumer demand.
Stanbic Bank Kenya’s Purchasing Manager’s Index (PMI) shows that last month PMI dropped to 49.7.
A PMI reading below 50 indicates a downtick and deterioration in business activities, while the figure above shows growth and improvement.
While 30 percent of monitored businesses registered a fall, 28 percent posted an expansion.
“Business conditions contracted slightly in September, implying that the pickup in August was due to some recovery after the disruptions caused by protests earlier this year,” Standard Bank Economist Christopher Legilisho said.
“New orders and output were weak due to subdued consumer demand—notwithstanding some firms reporting increased client turnout and higher investments,” he added.
“The agricultural sector, wholesale and retail sectors and services recorded declines, though the manufacturing and construction sectors both ticked up.”
Legilisho anticipates inflation to remain muted in September at around 4 to 4.5 percent.
“However, business expectations for the coming year remain at their weakest levels in a decade due to the economic headwinds of this year.”
