Key private sector players during a panel discussion at the launch of a
campaign dubbed 'Why The Future Is Kenya' on June 23, 2017. FILE PHOTO |
DIANA NGILA | NMG
Business conditions in Kenya
deteriorated in June as political uncertainty and lack of access to
credit continue to weigh on demand of goods and services, a survey by
Stanbic Bank and HIS Markit shows.
The Stanbic-IHS
Markit Purchasing Managers Index (PMI) shows that June was the worst
performing month since the survey began in January 2014.
“Down
from 49.9 in May to 47.3 in June, the seasonally adjusted PMI fell to a
survey-record low. Overall, the second quarter was the worst-performing
quarter in the series history,” said Stanbic
and Markit in the PMI report released Wednesday.
Readings
above 50 on the index signal an improvement in business conditions on
the previous month, while those below 50 show a deterioration.
“Firms
frequently linked lower business activity to a lower customer turnout
due to the political climate and weaker purchasing power among clients,”
said the firms in the PMI report.
Businesses spooked
Campaigns
for the August general election have sometimes been characterised by
rhetoric that has led to fears of possible incidences of unrest, thus
spooking both businesses and customers.
The economy is also going through its slowest period of credit growth in more than a decade.
Latest
Central Bank data shows that in the one year to March 2017, credit to
the private sector grew by only 3.3 per cent, far below the preferred 12
to 15 per cent that is considered optimum to fuel economic growth.
The manufacturing, business services and agriculture sectors have been hardest hit by the credit growth slowdown.
ALSO READ: Rate caps upset CBK monetary policy making
No comments :
Post a Comment