This archive report was first published on 6 July 2021.
Published on July 6, 2021, the latest Stanbic Bank Kenya Purchasing Managers Index (PMI) revealed a modest improvement in Kenya's private sector activity in June.
The Purchasing Managers Index, which measures economic activity, posted a reading of 51.0 in June, a slight dip from 52.5 in May. This reading indicates growth in business activity, with a reading above 50 points signaling expansion and below 50 points contraction.
According to the Stanbic Bank survey, the improved activity was driven by increased output from the manufacturing, construction, and agriculture sectors, as well as a significant jump in new orders.
Companies increased their input purchases in anticipation of higher new order inflows, and more businesses expanded their workforce in June as demand for goods and services rose.
However, the survey also showed that the price of goods jumped up in June due to high fuel costs and increased demand for raw materials, leading businesses to raise their selling charges to sustain profit margins.
Despite the improvement, most Kenyan businesses have a bleak outlook about the future, partly due to concerns that Covid-19 restrictions could harm economic activity.
