NAIROBI, Feb. 5 (Xinhua) -- Kenya's private sector business activity edged closer to stabilization amid the decline in inflationary pressure in the East African country, according to a survey released Monday.
The Kenya Purchasing Managers' Index (PMI) survey, released in the Kenyan capital of Nairobi, revealed that private-sector business activity was boosted by improved performance in agriculture.
The increased activity led firms to expand their workforce for the first time in five months, according to the survey conducted by Stanbic Bank, which tracks business activity among private enterprises.
"The near stabilization followed a continued slowdown in inflationary pressure, with both input and output prices at or near their long-term averages," the survey said.
According to the study, the Kenya PMI rose to 49.8 from 48.8 the previous month, signaling improved business conditions. "New export orders grew for the eleventh straight month as demand from the United Kingdom and Germany picked up, presumably due to Kenya's weaker exchange rate," the survey added.
Christopher Legilisho, an economist at Stanbic Bank, said that the surveyed private firms indicated they faced pressure from high import costs but are confident in strong business ahead.
Kenya's inflation increased 0.3 percent to 6.9 percent at the end of January, driven by a surge in prices of fuel and food. ■