Kenya Private Sector Bounces Back in August After Protests: Stanbic Bank PMI
In a recent survey, Kenya's private sector activity showed signs of improvement in August following disruptions caused by anti-government protests the previous month. The Stanbic Bank Kenya Purchasing Managers' Index (PMI) rose to 50.6 in August from 43.1 in July, indicating a return to expansion.
According to Stanbic Bank Kenya, the impact of protests faded in August, allowing businesses to resume normal operations. Output increased in services, wholesale & retail, and construction sectors, while manufacturing and agriculture experienced declines.
However, despite the uptick in activity, the survey revealed a pessimistic outlook among businesses, with most expressing concerns about economic prospects for the next 12 months. Only 5% of companies surveyed expected growth in the near future.
Christopher Legilisho, an economist at Stanbic Bank, noted that business expectations worsened in August, reflecting reduced optimism about future output.
In conclusion, the recovery in Kenya's private sector activity is a positive sign after the disruptions caused by protests. However, the overall sentiment remains cautious, with businesses expressing concerns about future growth. It is essential for investors and individuals to monitor these trends closely to make informed decisions about their finances and investments.