Kenya’s private sector growth rebounded in October, driven by a sharp increase in new business, according to the latest Purchasing Managers’ Index (PMI) data released by CfC Stanbic Bank and market research firm, IHS Markit.
The Markit Stanbic Bank Kenya Purchasing Managers’ Index(PMI) for manufacturing and services rose to 54.0 from 52.7 the previous month.
“The onset of the short rain season, which so far seems quite positive for the agrarian sector, could help GDP growth recover in the fourth quarter of 2018,” said Jibran Qureishi, the economist for East Africa at Stanbic Bank.
“In particular, export demand grew rapidly, while new projects and favourable weather conditions also boosted output. As a result, firms raised employment at the fastest rate in six months. Price pressures were slightly weaker than in September, but remained historically elevated overall,” part of the survey reads.
According to the survey, as a result, inventory levels also grew rapidly. Supplier delivery times shortened again, with firms commenting that greater competition had contributed to improved vendor performance.