East Africa faces uneven growth as PMI readings vary
The Stanbic Bank Uganda Purchasing Managers' Index (PMI) surged to 54.1 in May 2024, rising from 52.6 in April, indicating the second consecutive month of expansion. Additionally, the European Central Bank reduced interest rates by 25 basis points, indicating a moderation in inflation. Daisy Anthea Nitwe, the Country Lead of Derivatives & Structured Solutions at Standard Bank Group, joins CNBC Africa for an in-depth analysis of the East African market.
Wed, 12 Jun 2024 15:04:00 GMT
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AI Generated Summary
- The Stanbic Bank Uganda PMI increased to 54.1 in May 2024, reflecting the second consecutive month of growth and pointing towards improved business conditions.
- Kenya's PMI also surged to 51.6, showcasing positive signals for the region's economic outlook.
- The ECB's decision to lower interest rates by 25 basis points has implications for the region, including reduced debt servicing costs and increased access to capital markets for sovereigns.
East Africa is on course for economic growth as indicated by the latest Purchasing Managers' Index (PMI) readings and the recent decision by the European Central Bank (ECB) to reduce interest rates. The Stanbic Bank Uganda PMI surged to 54.1 in May 2024, marking the second consecutive month of expansion. This positive trend signifies improved business conditions and increased output, new orders, and employment opportunities in Uganda. Additionally, Kenya's PMI also rose to 51.6, a level not seen since January 2023, demonstrating positive signals for the region.
