Nairobi — Kenya's private sector activity saw modest improvement in October, driven by increased sales and rising client interest.

The latest Purchasing Managers' Index (PMI) by Stanbic Bank Kenya recorded a score of 50.4, up from 49.7 in September, signaling an expansion in business activity.

A PMI reading above 50 points to growth, while a reading below indicates contraction.

"The boost in output, fueled by a steady recovery in new orders, highlights a revival in sales and client engagement, especially in agriculture, construction, and wholesale & retail sectors," said Mulalo Madula, Senior Analyst at Standard Bank.

However, growth was moderated by declines in manufacturing and services, reflecting varied sectoral performance.

The report also noted an uptick in hiring, marking the first rise in employment since July.

"This slight increase in output led to a mild rise in employment, allowing firms to work down backlogs," the report indicated.

While input cost pressures remain mild, a balance between increased material prices and reduced fuel costs has led to only slight increases in average selling prices.

However, the Future Output Index, while showing improved business confidence, remains historically low.