New orders impact Kenya’s private sector activity in January

Higher fuel prices was a key factor leading to the uptick in living costs. As well as impacting demand, businesses found that the price hike added to purchasing prices, which rose sharply.

Economic activity in Kenya’s private sector activity slowed slightly in January, partly due to a softer increase in new orders in January according to the Purchasing Managers’ Index™ (PMI™) released on Tuesday.

The month recorded a drop in the headline PMI to 53.2, from 53.6 in December, to signal a weaker, but still solid improvement in business conditions at Kenyan private sector firms.

“Owing to cyclical factors, private sector activity may soften somewhat over the next couple of months as growth broadly in the agriculture sub-sector eases,” said Jibran Qureishi, regional economist for East Africa at Stanbic Bank.

“However, despite these risks, lower international oil prices should help keep costs suppressed for the private sector and thus underpin purchasing activity.”

Multimedia platform providing analysis of business & financial news in East Africa.

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