Stanbic April procurement survey shows economy is picking up

Money Markets

CFCStanbic economist Jibran Qureishi (left) and Markit Group director Richard Willis during the launch of the Purchasing Managers’ Index (PMI)survey in Nairobi on March 11, 2015. PHOTO | FILE 

By GEOFFREY IRUNGU

In Summary

• Private sector output in Kenya increased in April, a development that reflected the overall improvement in business conditions.

Kenya’s Purchasing Managers Index (PMI) climbed sharply in April as economic activity picked up among private firms.

The procurement managers’ survey, released by CfC Stanbic Bank yesterday, showed a sharp climb to a four-month high of 56.2 in April, up from 53.8 in March.

“The latest reading was consistent with a robust improvement in operating conditions at Kenyan private sector companies. It also signalled an acceleration in growth, following the weakest quarterly average recorded by the survey so far in Q1 2015 (53.9),” said a statement from CfC Stanbic Bank.

READ: Purchasing managers upbeat on Kenya’s economy, survey says

Private sector output in Kenya increased in April, a development that reflected the overall improvement in business conditions.

“New orders rose boosting output; however it’s important to highlight the strongest jump in new export orders since data collection started. This is hardly surprising considering that the shilling fell to a four-year low against the dollar, thereby restoring competitiveness to the private sector exports,” said CfC Stanbic Bank economist Jibran Qureishi.

The rate of expansion picked up fastest since last December, helped by stronger demand and marketing initiatives.

“New project opportunities and strong customer turnout contributed to the latest rise in new orders,” said Mr Qureishi.

Private sector firms continued to hire additional staff in April, with the pace of job creation stronger than the average observed over 16 months of data collection.

Higher new work inflows were reported to have boosted employment growth in the latest period, CfC Stanbic Bank said. The bank said due to expansion in output and new work intake inventories rose more quickly during the month.