Kenya business activity shows first expansion since Aug, PMI survey shows

Kenya's private sector activity bounced back in February to record its first expansion since August, helped by easing inflation and gains in agriculture, manufacturing and services, a survey showed on Tuesday.

The Stanbic Bank Kenya Purchasing Managers' Index (PMI) jumped to 51.3 in February from 49.8 a month earlier. Readings above 50.0 signal growth, while those below point to a contraction. It is the first time since August that the figure has gone above 50.

"Business activity expanded across the Kenyan private sector ... as a further softening of inflationary pressures supported a fresh increase in new order volumes," Stanbic Bank said in commentary accompanying the survey.

Inflation fell to 6.3% year-on-year in February from 6.9% a month earlier, data from the Kenya National Bureau of Statistics showed.

"There was a notable expansion ... with output increasing in agriculture, manufacturing, and services. However, construction and wholesale & retail activity slipped," Christopher Legilisho, an economist at Stanbic Bank, said.

This article originally appeared on Reuters

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