[Image]Firms cut their workforce in August due to low sales, the third time in the past four months, a new survey shows.Findings of the Stanbic Bank Kenya’s Purchasing Managers Index(PMI)—a monthly survey on the private sector- said the staff cuts were however mild.“With sales dropping and the outlook remaining weak, staff numbers were lowered for the third time in the past four months in August. That said, the rate of job cuts was only marginal. Subsequently, backlogs of work rose for the third month running” the index report said.RELATEDFlexible workspace is the new normal as hybrid reality rulesDN2 30 min agoGender inequality in healthcare impeding servicesGender 30 min agoThe overall PMI reading — a gauge for month-on-month private sector activity such as output, new orders, and employment —fell further into contraction territory in August, as disruption from the national election added to sustained declines in output and new orders.Also Read: Layoffs loom at Moi University over financial woesFor the fifth consecutive month, the headline PMI registered below the 50 neutral mark in August, dropping to 44.2 from 46.3 in July. The reading was the lowest seen since the lockdown-hit period in April 2021.A PMI of 50 and above signals an improvement in business conditions on the previous month, while readings below that show a deterioration in the business environment“According to surveyed businesses, the election had a notable toll on economic activity during August. Output fell steeply and at the quickest pace for 16 months, with the construction sector seeing the greatest decline” Stanbic Bank said.“New business inflows also fell at a sharp and accelerated pace, with the election, rapid inflation and resulting lack of cash flow reportedly leading to a sustained drop in client orders” it added.Election-linked disruption meant that some vendors were unable to deliver inputs, leading to the first lengthening of lead times since the first wave of the Covid-19 pandemic in early-2020. BY DAILY NATION
posted by Breaking Kenya news at 15:01 on 7 Sept 2022
"Firms cut jobs third time in four months"
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