In April, Kenyan private sector activity declined, owing to growing consumer inflation and supply shortages for several items.
The S&P Global Kenya Purchasing Managers’ Index (PMI) fell from 50.5 a month ago to 49.5. Growth in activity is distinguished from contractions at the 50.0 level.
S&P Global said in a statement accompanying the survey that “Kenyan enterprises faced a renewed worsening in business conditions in April, as PMI survey data signaled a reduction in customer demand in reaction to rising consumer prices and living expenditures.”
“Firms reported a significant drop in output.
Firms encountered supply shortages for a variety of commodities, as well as a near-record spike in input prices, resulting in a significant drop in output.”
In April, Kenyan private sector activity declined, owing to growing consumer inflation and supply shortages for several items.
The S&P Global Kenya Purchasing Managers’ Index (PMI) fell from 50.5 a month ago to 49.5. Growth in activity is distinguished from contractions at the 50.0 level.
Consumer inflation increased to 6.47 percent from 5.56 percent in April, according to figures from the statistics office.
According to the report, client demand has declined as a result of increasing inflation.
Domestic demand declined, owing to lower client spending following major hikes in food and fuel prices, according to Kuria Kamau, Stanbic Bank’s Fixed Income and Currency Strategist.
