Overview:
Employment remained healthy in September, with firms expanding their workforce numbers, extending the current sequence of job creation to a year-and-a-half. Supporting the rise in employment was further business confidence in the year-ahead outlook for output.
The Stanbic Bank Purchasing Index (PMI) for September dropped slightly to 54.2 from 56.3 in August, but remains above the 50.0 threshold, indicating a positive business outlook. Effective advertising played a significant role in sustaining strong business output and attracting new clients.
“Strong business output and new order growth were linked to robust client demand, reinforced by effective advertising,” said Christopher Legilisho, Economist at Stanbic Bank. “Firms foresee healthy client demand conditions over the coming year, with plans alongside to increase investment in advertising and new products.”
Employment remained healthy in September, with firms expanding their workforce numbers, extending the current sequence of job creation to a year-and-a-half. Supporting the rise in employment was further business confidence in the year-ahead outlook for output.
However, overall input costs continued to increase in September, driven by higher utility bills and supplier prices. Construction firms noted a renewed decline in new orders during September.
“Both input and purchase prices increased relative to August, reflecting higher prices for raw materials as well as higher utility bills,” Legilisho noted. “Wage prices broadly stagnated in September as businesses increased output prices, thereby passing the higher costs on to consumers. Positively, this did not translate into high inflation during the month as the rate of inflation declined to 3% year-on-year in September from 3.5% in August.”
The Stanbic PMI is compiled by S&P Global from responses to questionnaires sent to about 400 purchasing managers, covering sectors including agriculture, mining, manufacturing, construction, wholesale, retail and services.