Hiring rebounded the strongest in September as companies resumed recruitments in the agricultural and manufacturing sectors.
The latest purchasing managers’ index (PMI) by Stanbic Bank indicates that the index rose to 51.9 in September, up from 49.4 in August.
In the period, the steady growth in employment and the slowing of input price inflation in September, helped drive the improvement in business conditions indicating a renewed expansion in activity, which in turn was strongly related to rising sales and a stabilising economy.
This is the first time since April that Kenya’s PMI rose above the 50.0 neutral mark.
The index pointed to a fresh upturn in the health of the private sector, after a period impacted by political protests and rising price pressures.
Out of the firms surveyed, roughly a third or 33pc noted that their output had grown during September, compared to 23pc that recorded a decline.
Some businesses reportedly benefitted from effective marketing and investment into products and services.
However, some areas experienced weakness, especially in the construction industry where output fell sharply.
In the same period,Kenyan firms saw a further softening in the rate of costs of raw materials, labor, and other resources used to produce goods and services, from July’s seven – month high in September.
Approximately 9pc of the survey panel faced higher costs compared to August which was mainly due to a rise in purchase prices. However, purchase prices rose during September, which monitored businesses related to a mix of higher taxes, increased fuel prices and greater costs for some commodities, partially due to short supply.
Kenyan companies raised their output prices at the end of the third quarter. The rate of inflation was modest, despite accelerating from August’s 12-month low.
