Kenya Stanbic Bank PMI2014-2021 Data | 2022-2023 Forecast | Calendar | Historical

The Stanbic Bank Kenya PMI fell to 51 in June of 2021 from 52.5 in May, indicating a sustained, but weaker, expansion in the Kenyan private sector economy. Output, new orders and employment continued to rise, although rates of growth slipped from May. Purchasing of inputs also expanded during June, with firms often reporting efforts to build inventories in anticipation of higher new order inflows. On the price front, overall input cost inflation was unchanged from May, leading businesses to raise their selling charges in a bid to sustain profit margins. Looking forward, the business outlook slipped to the second-weakest in the series history, amid concerns about further COVID-19 restrictions.

The Stanbic Bank Kenya PMI rose to 52.5 in May of 2021 from 41.5 in the prior month. It was the highest reading since January, pointing to a moderate improvement in operating conditions, helped by the lifting of some Covid-19 restrictions. New business grew at the fastest rate in seven months, while output and employment both rose to the strongest degrees since January. Also, purchasing activity and employment returned to growth amid a strong increase in workloads. On the price front, price margins were squeezed for the third month running as output charges rose at a slower rate than input prices, despite the latter increasing at the softest pace since February. Looking ahead, business confidence improved to a three-month high.

The Stanbic Bank Kenya PMI fell to 41.5 in April of 2021, from 50.6 in the prior month, amid the third coronavirus wave in the country. The latest reading pointed to the sharpest contraction in Kenya’s private sector since June last year as partial lockdowns in five counties, including Nairobi, and increased curfew hours considerably affected movement and demand. New business and activity declined for the first time since June. The lower sales volumes and activity requirements resulted in the first cut in jobs in seven months, while backlogs shrank at a faster pace. Input costs rose sharply due to fuel prices and raw materials shortages linked to global supply issues, while output charges increased at the slowest pace in four months. For the year ahead, companies were the least optimistic since the survey began in 2014, with just one in five business owners forecasting output growth.

The Stanbic Bank Kenya PMI dropped to 50.6 in March of 2021 from 50.9 in the previous month. The latest reading pointed to just a marginal improvement in the health of the private sector, and the weakest seen since the recovery in economic conditions from the initial impact of the Covid-19 pandemic began last July. Output rose only slightly and new order growth slowed further as cash flow issues linked to the Covid-19 pandemic limited customer spending. At the same time, employment increased only modestly, while inventories rose at the slowest rate in the current growth sequence. On the price front, input prices continued to rise sharply, in particular fuel costs. As a result, output prices rose for the third straight month, but at a slower rate than input prices. Finally, expectations for future activity slipped in March and were the third-lowest seen in the series history, due to worries of a further impact from pandemic on demand.