Kenya's private sector saw a slight improvement in October, with increased business activity and job creation, according to an S&P Global survey.
The Purchasing Managers' Index (PMI) rose to 50.4, signaling marginal growth. This was driven by increased sales and customer interest, despite ongoing financial challenges and political uncertainty.
Businesses increased their purchasing activity in anticipation of new customers, leading to a significant rise in inventories. Input costs remained low, resulting in only a slight increase in prices. Businesses expressed increased confidence about future activity, planning new ventures and investments. However, overall sentiment remained subdued compared to historical trends, despite the recent uptick in confidence.
While input costs rose slightly due to taxes and material costs, lower fuel prices helped keep overall costs down compared to last year. This resulted in one of the slowest increases in selling prices in nearly four years.