Private sector activity rebounds to two-year high

By Peter Theuri

Kenya’s private sector registered stronger output last month owing to the easing of restrictions.

According to the latest Purchasing Managers’ Index (PMI) survey data by Stanbic Bank, the month saw growth hit a two-year high as the government relaxed Covid-19 restrictions.

Posting at 56.3 in September, the headline PMI was up to its highest reading since April 2018, indicating a sharp improvement in the health of the private sector economy.

The index rose from 53.0 in August and marked the third successive expansion since the downturn caused by the Covid-19 outbreak. Readings above 50 signal an improvement in business conditions on the previous month, while below 50 show deterioration.

According to Stanbic, customer demand expanded at the sharpest rate since January 2016, leading to a rise in backlogs. As a result, job numbers were stable after falling in the six previous months.