Private sector activity slump may widen on falling ordersThe agriculture boom may ease in the coming months, reducing new orders for various products, new data shows.According to the Stanbic Bank Kenya Purchasing Managers’ Index (PMI) released yesterday, signs of reducing output in the private sector manifested in January, with the index falling marginally to 53.2 from 53.6 in December. The survey found that the country’s private sector activity slowed slightly in January, hurt by a dip in the growth rate for new orders, although output rose. “Owing to cyclical factors, private sector activity may soften somewhat over the next couple of months as growth broadly in the agriculture sub-sector eases,” said Jibran Qureishi, regional economist for East Africa at Stanbic Bank. Kenya has been enjoying a booming agriculture sector that lifted the gross domestic product (GDP) to six per cent in the third quarter on improved weather conditions. Employment growth also remained modest in January despite a strong rise in orders.

Source: Standard Digital February 05, 2019 21:04 UTC