Nairobi — Kenya's private sector activities improved last month, as new data shows, at a time when the inflation rate fell.

The latest Stanbic Bank Kenya Purchasing Managers' Index (PMI) improved to 48.8 from 45.8 in November 2023.

Whereas a reading above 50.0 signals growth in business activities, a reading below it indicates contraction.

In the month of December last year, Kenya's inflation dropped to 6.6 percent, down from 6.8 percent, according to the Kenya National Bureau of Statistics.

"The Purchasing Managers Index (PMI) improved in December, despite still difficult business conditions for the private sector," Standard Bank Economist Christopher Legilisho said.

"Service sector companies reported an uplift in activity while declines persisted particularly in manufacturing and construction sectors, as firms continued to signal cost-of-living pressures and weak demand conditions," Legilisho added.

"That said, inflationary pressures are noted to have eased, amid better cash flow prospects for clients. The rate of job declines also softened compared to previous months with the agricultural sector seeing an increase in hiring."