In Summary
  • Exports demand fell to its lowest in 10 months at the end of November forcing companies to slow down on hiring
  • Stanbic reckons that even though operating conditions improved solidly in November, growth in output and new orders were marginally below those seen in October to sustain additional jobs.
  • The finding breaks an earlier trend where backlogs of work rose for three successive months to October, creating room for more hiring.

Private firms created fewer jobs in November compared to the previous month saddled by a slowdown in output growth and new orders in line with subdued demand for Kenya’s exports, the latest industry data shows.

Exports demand fell to its lowest in 10 months at the end of November forcing companies to slow down on hiring unlike in October when new jobs were created at the fastest pace in six months, according to Stanbic Bank Kenya’s Purchasing Managers’ Index (PMI).

“The expansion of export demand fell to its weakest in 10 months. Firms lowered the pace of job creation, but at the same time raised purchasing activity at the sharpest pace since June,” the survey found.

PMI, which is based on data from purchasing executives in about 400 private sector companies, dropped to 53.1 in November from 54.0 in the previous month.

The outcome is in line with the finding that the private sector registered the smallest increase in new business from abroad in 10 months.

Stanbic reckons that even though operating conditions improved solidly in November, growth in output and new orders were marginally below those seen in October to sustain additional jobs.

“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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