Kenyan businesses experienced a slight uptick in operating conditions at the start of the fourth quarter, an S&P Global survey shows.
The headline Purchasing Managers’ Index (PMI) rose to 50.4 in October from 49.7 in September, indicating a marginal upturn in the health of the private sector.
A PMI reading above 50.0 signals growth, while below that level indicates contraction.
According to the survey findings, output and new orders expanded, driven by rising sales and client interest. However, challenges like cash flow constraints and economic uncertainty persisted.
Subsequently, firms added to their workforce for the first time in three months, helping to reduce backlogs of work.
In addition, businesses increased their inventory levels at the fastest pace in over a year, anticipating future demand.
As a result, business confidence rose to a four-month high, with firms anticipating growth through new outlets, marketing strategies, and investments.
“Despite the slight rise in output, many firms continued to struggle with cash flow constraints, tough economic conditions, rising costs and political uncertainty,” the survey reported.
