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CfC Stanbic Bank, Markit launch Kenya private sector based index

Africa Global Funds
March 16, 2015, midnight
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CfC Stanbic Bank and Markit, a financial information services provider, have launched the Purchasing Managers’ Index (PMI) for Kenya, a composite index premised on providing the earliest, most accurate and most comprehensive suite of economic indicators in the country.

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CfC Stanbic Bank and Markit, a financial information services provider, have launched the Purchasing Managers’ Index (PMI) for Kenya, a composite index premised on providing the earliest, most accurate and most comprehensive suite of economic indicators in the country.

PMI is calculated as a weighted average of five individual sub-components: new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%).

Equally, the key indicators will provide a solid basis for investment strategies and asset allocation.

The survey, which started in January 2014 provides an early indication of business conditions in the country.

The latest figures (February 2015), show that the Kenyan private sector output increased at a faster rate in February, mirroring the overall improvement in business conditions.

Commenting on the February figures, Jibran Qureishi, Economist at CfC Stanbic Bank, said: “The PMI index recovered in February after a slower pace of growth recorded last month, primarily driven by rises in output and new orders. Interestingly, the PMI seems to have lost the solid momentum witnessed towards the end of last year, although we suspect this is transitory.”

“The decline in international oil prices and power tariffs as a result of the geothermal component being added to the national grid should lower costs for most firms in Kenya and will probably lead to higher output in the coming months. Confidence within the Kenyan private sector remains high and should continue to bode well for business conditions,” he added.

“The February data signalled that the overall increase was driven by modest rises in both purchase prices and staff costs during the month. Subsequently, prices charged by Kenyan private sector firms rose in the month under review, albeit at a historically muted pace,” said Qureish.

CfC Stanbic Bank, owned by CfC Stanbic Holdings, is Kenya’s sixth largest commercial bank as measured by total assets.

CfC Stanbic Holdings is a subsidiary of Stanbic Africa Holdings, which is in turn owned by Standard Bank Group, Africa’s leading banking and financial services group.

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