Khusoko – East African Markets
    Facebook Twitter Instagram
    Khusoko – East African MarketsKhusoko – East African Markets
    • NEWS
    • ECONOMY
      • BANKING & FINANCE
      • COMPANY
      • MARKETS
    • INDUSTRY
      • AGRICULTURE & ENVIRONMENT
      • HEALTH & WELLNESS
      • PROPERTY
        • RETAIL
      • TECHNOLOGY
        • ELECTRONICS
    • ENTREPRENEURSHIP
      • ENTREPRENEURS
      • PEOPLE
      • PERSONAL FINANCE
    • SPORTS
    • COMMENTARY
    • ARTS & CULTURE
      • BOOKS
      • ENTERTAINMENT
      • FAMILY & RELATIONSHIPS
      • FASHION & STYLE
      • FOOD & DRINK
      • TRAVEL & LEISURE
    Khusoko – East African Markets
    MARKETS

    Kenya Business Activity Contracts for Fourth Straight Month in May

    I KBy I K2023-06-12No Comments2 Mins Read
    A section of The Nairobi Expressway during its construction.

    Business activity in Kenya’s private sector slowed for a fourth straight month in May, a private business survey showed.

    The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) came in at 49.4, up from 47.2 in April 2023, signalling the slowest deterioration of the business environment, mainly attributable to the elevated inflationary pressures.

    Readings above 50.0 signal an improvement in business conditions in the previous month, while readings below 50.0 show a deterioration.

    “Inflationary pressures meant weak demand; new orders declined, as did output in the manufacturing and wholesale and retail sectors,” said Mulalo Madula, Economist at Standard Bank.

    “Input prices are now at their highest since the survey began in 2014 as the KES depreciated further, which increased import costs. This caused the greatest increase in output prices in seven months — but it was less than the concomitant increase in input prices. Still, as in recent months, and despite a further decline in new orders, export orders gained further momentum.”

    In the past twelve months, inflation in Kenya has remained above the Central Bank of Kenya’s (CBK) target range of 2.5%–7.5%. In May 2023, the inflation rate increased to 8.0% from 7.9% recorded in April 2023. This has put consumer wallets under pressure, leading to a reduction in demand for certain goods and services.

    During the month, the high cost of purchase is also attributable to the sustained depreciation of Kenya shilling against major currencies, which has made imports very expensive.

    As a result, manufacturers and producers transfer the high costs to consumers through hikes in consumer prices in order to maintain their profit margins.

    According to Mulalo, despite the poor business environment, “Employment expanded at the fastest rate since November 2021; however, employment in the wholesale and retail sub-sector was down.”

    “Inventories managed to increase despite firms slowing purchases of inputs, implying that inventory was driven partly by fewer new orders. Positively, supplier shipping times were much tighter.”

    Why Is the Price of Sugar Being Watched in Kenya?


     

    Kenya Private Sector
    I K
    I K
    • Website

    IK is a Masinde Muliro University graduate. His interests are in news and analysis on women's rights, politics, technology, law, and global affairs.

    Related Posts

    Kenya Airways Ships First Batch of Avocados to India

    2023-09-18

    Kenya Steeply Hikes Fuel Prices For September 2023

    2023-09-17

    Kenya and China Strengthen Ties with First Omena Export

    2023-09-11

    Leave A Reply Cancel Reply

    Our Language is Flirty
    https://www.facebook.com/flirtynailsparlour/
    MORE TOP STORIES
    • Kenya’s First-ever Sukuk Bond Approved by CMA
    • Safaricom Raises M-PESA Transaction Limit to KSh. 250,000
    • Data Plus’: New Plan From Safaricom, Britam From KES 25 Daily
    • Standard Chartered Kenya Rewards New Salary Account Holders
    • Loreen Makwanya Named Life Insurance Director at Old Mutual
    • Facebook
    • Twitter
    • LinkedIn
    Facebook Twitter LinkedIn
    • ABOUT US – KHUSOKO
    • PRIVACY POLICY
    • KHUSOKO STANDARDS GUIDE
    © 2023 Khusoko. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.