Kenya: PMI rises to an over one-year high in May
The Stanbic Bank Kenya PMI improved to a 16-month high of 51.8 in May from 50.1 in April. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in private-sector operating conditions compared to the previous month.
May’s upturn reflected the fastest expansion in output and input buying in 20 months. Notably, expansions in output were observed in the services, manufacturing, and wholesale and retail sectors, although the agricultural and construction sectors experienced declines due to adverse weather conditions. Output, as well as input buying, were boosted by lower input costs as a result of reduced fuel prices and import costs. Easing inflationary pressures also contributed to a renewed uplift in the growth of new order inflows, the sharpest since January 2023.
Lastly, despite a slight dip from April’s 13-month high, business confidence remained robust, reflecting plans to open new branches, purchase new vehicles, and increase marketing spending.