Business activities softened in November impacted by slow export demand and disruptions in the transport sector after scrutiny on the status PSVs.
The Stanbic Purchasing Managers’ Index for November says private sector business confidence eased to a reading of 53.1 from 54.0 recorded in October.
The report says expansion of export demand also fell to its weakest in ten months. Firms lowered the pace of job creation, but at the same time raised purchasing activity at the sharpest pace since June.
After a chaotic 2017, the economy is showing signs of closing the year with a major turn-around in business confidence. In the last ten months, the private sector has recorded higher business confidence according to the Stanbic bank Purchasing Managers’ Index.
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According to the index, the reading for November stood at 53.1, though softer than the October reading of 54.0. Purchasing Managers’ Index readings above 50 signal an improvement in business conditions on the previous month, while readings below 50 show points to deterioration.
The expansion of export demand also fell to its weakest in ten months. Private firms lowered the pace of job creation, but at the same time raised purchasing activity at the sharpest pace since June the index reports.
New orders were uplifted sharply in November, as a large proportion of firms saw demand from clients improve. However, the rate of expansion was marginally slower than in October.
Export demand also grew at a reduced pace, marking the smallest increase in new business from abroad for ten months. Employment rose at a more gradual pace in November, following a solid rate of job creation in October.
Similarly, the rate of accumulation in backlogs of work eased to a three-month low, indicating that weaker demand growth had reduced the pressure on unfinished orders.
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