NAIROBI, Kenya, July 3 – Kenya’s private sector activity rebounded in June as stronger customer orders boosted sales and helped end three consecutive months of contraction.
The latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 50 in June from 46.6 in May, signalling a stabilisation in business conditions.
A PMI reading above 50 indicates an improvement in business activity, while a reading below 50 points to a contraction.
“The latest reading therefore indicated that operating conditions stabilized in June, following contractions in each of the past three months,” the Stanbic Bank PMI said.
The survey showed that improved demand led to a rise in new orders, supporting sales across the private sector, although firms continued to face challenges from weak consumer spending and higher operating costs.
Despite the recovery, output growth remained subdued as businesses cited soft client demand and persistent price pressures.
Standard Bank Economist Christopher Legilisho said firms nevertheless remain optimistic about the outlook.
“Still, firms are more confident about future output expectations due to advertising, the entrenchment of technology, and expectations of lower fuel costs,” Legilisho said.
The June reading suggests the private sector has regained some momentum after a difficult second quarter, although businesses continue to monitor inflationary pressures and consumer demand.
