The Stanbic Bank Kenya PMI inched higher to 53.3 in December 2019 from 53.2 in the previous month, pointing the strongest expansion in the country private sector in three months. Output grew only marginally amid weather disruptions while new orders expanded at a faster rate, driving a solid rise in backlogs. New export orders increased at a steep rate, due to greater demand from European customers. Meantime, employment rose, albeit at the softest pace in seven months. Stocks of purchases also increased, although the rate of expansion eased back for the fourth month running, On the price front, input price inflation climbed to a four-month high, as suppliers raising their charges amid disruptions from heavy rains. Meanwhile, output prices increased for first time in three months. Lastly, confidence improved slightly amid a launches of new products, branch opening, and advertising efforts. Manufacturing Pmi in Kenya averaged 52.52 points from 2014 until 2019, reaching an all time high of 57.70 points in December of 2014 and a record low of 34.40 points in October of 2017. source: Markit Economics
Manufacturing Pmi in Kenya is expected to be 53.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing Pmi in Kenya to stand at 53.60 in 12 months time. In the long-term, the Kenya CfC Stanbic Bank PMI is projected to trend around 53.70 points in 2020, according to our econometric models.