Kenyan private-sector businesses enjoyed a solid improvement in operating conditions during December, according to the latest Markit Stanbic Bank Kenya Purchasing Managers Index (PMI) survey results released on Monday, 7 January 2019.
Output and new orders recorded further sharp increases, with the latter growing at a faster rate than in November. According to the survey, employment growth also improved, while input buying expanded sharply.
“The Stanbic PMI closed the year strongly, recording the highest average since 2014. We believe that GDP growth remains on track to test 6.0 percent in 2018 and furthermore the good weather conditions,” Jibran Qureishi, Regional Economist East Africa at Stanbic Bank said in a statement issued in Nairobi.
At the same time, cost inflation weakened to the least marked in five months, with output charges also seeing a softer increase.
“At 53.6 in December, the headline PMI rose from November’s reading of 53.1, signalling a solid advancement in Kenya’s private sector economy,” the survey noted.
The headline figure derived from the survey is the Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
Stanbic noted that new orders at Kenyan businesses continued to rise sharply, with the pace of increase slightly faster than in November.
Similarly, export orders expanded at a substantial rate, indicating that firms were buoyed by an influx of both domestic and overseas demand, added the survey.