Private sector activities remained down in May

Business Daily Kenya:  Kenyan private sector performance remained stagnant in May mainly due to marginal output, which contributed to the w...

Business Daily Kenya: 

Money. Photo/Courtesy

Kenyan private sector performance remained stagnant in May mainly due to marginal output, which contributed to the weakness of overall business conditions, the Market Purchasing Manager’s Index (PMI) survey indicates. According to the PMI, the output was below the 50 thresholds.

The output declined from 49.9 in May from 50.3 recorded in April. Notably, the index reading was the second-lowest -behind March- observed since the inception of the series.

Stanbic Bank Regional Economist for East Africa Jibran Qureshi said last month, the recovery in business conditions could prove to be transitory, due to a cocktail of dangerous headwinds.

“Financial constraints and weak consumer demand due to August elections are the two leading attributes to depressed performance of the private sector,” he said.

The fall in the PMI index was mainly driven by reduced output. Firms that recorded a decrease in activity blamed the upcoming elections, weaker purchasing power among clients and a lower customer turnout.

The post Private sector activities remained down in May appeared first on Mediamax Network Limited.

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