Kenya private sector experienced worst deterioration in August
By David Indeje / September 6, 2017
Kenya’s private sector activity experienced the ‘worst deterioration in the health’ driven by sharp falls in output, new orders and stocks of purchases according to the Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) survey.
“The seasonally adjusted PMI fell to a survey-record low of 42.0 in August from 48.1 in July. This was consistent with a sharp deterioration in business conditions across Kenya’s private sector,” read the survey.
The headline PMI index has now recorded below the 50.0 no-change mark for five of the past six months.
This is the fourth consecutive month, driven by a fall in business activity.
The survey indicates that , “The rate of contraction was the sharpest recorded since the inception of the survey in January 2014. Low money circulation and weak demand conditions were the key reasons cited by panellists behind a fall in output.”
The report also notes that, employment in the Kenyan private sector fell during August, the first decline in the survey history.