This archive report was first published on 5 August 2019.
On August 5, 2019, a Purchasing Managers Index (PMI) report revealed that business activity in Kenya's private sector remained strong in July, with the fastest growth in domestic and international demand in 11 months.
The PMI, which is based on interviews with corporate managers in the manufacturing and services sectors, showed a reading of 54.1 in July, a slight decrease from the 54.3 recorded in June.
According to Jibran Qureishi, regional economist at Stanbic Bank, the positive shift in private sector sentiment is evident, with the government's release of withheld payments contributing to the boost in business confidence.
"We don't think it's a coincidence that the government has begun releasing some withheld payments during this period, which is subsequently boosting business confidence and further emboldening firms to increase their purchasing activities," Qureishi said.
The report also noted that output and employment rose further, although at softer rates, while selling prices were driven up solidly. Additionally, sentiment for future activity posted a new survey-record high.
