Increased demand for goods and services coupled with higher number of new jobs saw business conditions improve by the fastest pace in January, according to a new survey.
The survey by CfC Stanbic Bank Purchasing Managers’ Index peaked at 56.4 last month, the highest reading in 13 months versus 55.5 in December 2015.
Readings above 50 signal an improvement in business conditions on the previous month, while any lower readings denote a deterioration.
The survey which covers the private sector indicates higher client signings increased the workload on companies leading to a jump in employment opportunities.
CfC Stanbic’s regional economist for East Africa Jibran Qureishi said: “2016 has begun on a solid footing, showing a similar trend to that seen towards the end of last year. The CfC Stanbic PMI accelerated to a 13-month high boosted by higher output, new orders and employment.”
Supply delivery time also shortened amid rising demand for input, boosting vendor performance to reach the best level recorded over the last three months. About 22 per cent of those surveyed reported faster deliveries.
The report validates a similar study by Standard Chartered Bank released on February 1 that showed business sentiment was up in January due to higher orders from clients.
Standard Chartered’s Business Sentiment Indicator rose 1.3 per cent month-on-month in January to 63.9.
