Farming, trade drive output for first time in seven months – Business Daily
A maize farm in Kitale. PHOTO | JARED NYATAYA | NMG
Kenya’s private firms put brakes on hiring in September despite increasing production levels for the first time in seven months, findings of a monthly survey suggested Wednesday.
Stanbic Bank Kenya’s Purchasing Managers Index (PMI) showed output in private sector posted the first growth since February, signaling recovery in economic activity following conclusion of a bruising electioneering period.
The overall PMI reading — a gauge for month-on-month private sector activity such as such as output, new orders and employment — climbed to 51.7 from 44.2 in August.
This signals the first growth in business deals since March. PMI reading above 50 denote improved business conditions, while levels below point to a contraction.
Growth in production was reported in agriculture, wholesale & retail as well as services like banking, while activity in manufacturing and construction contracted, according to the closely-watched survey based on responses from a sample of about 400 corporate managers.
Sales, on the other hand, ended a five-month falling streak with as “firms often highlighted an increase in customer turnout as concerns about post-election disruption faded” in September, the PMI report stated.
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