Kenya's private sector activity sinks further in June - PMI
Reuters
Published Jul 05, 2022 03:42AM ET
NAIROBI (Reuters) - Kenya's private sector activity contracted in June for the third month in a row, reaching its lowest level since April 2021, due to rising prices and shortages of items used in manufacturing, a survey showed on Tuesday.
The S&P Global (NYSE:SPGI) Kenya Purchasing Managers' Index (PMI) slid to 46.8 last month from May's 48.2. The 50.0 mark separates growth in activity from a contraction and the index has held below that level since April.
"Lower domestic demand along with the increase in input prices, lower cash flows and the upcoming elections forced firms to scale back on output sharply," said Kuria Kamau, fixed income and currency strategist at Stanbic Bank, which is involved in preparing the survey.
Millions of Kenyans will vote on Aug. 9 to pick a new president, local authorities and legislators. Two of Kenya's last three elections have been disrupted by violence, making some investors cautious ahead of this year's polls.
Year-on-year inflation rose to 7.9% last month, its highest level since August 2017, showing the extent of the increase in upward pressure on prices of basic goods.
The economy expanded robustly in the first quarter of 2022, official data showed last week, but that was before higher inflation started hitting demand and hardening pessimism.
"The 12-month outlook by firms remains at near historical lows," said Kamau.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.