Core Insights - The private sector activity in Kenya expanded for the third consecutive month in November, reaching its highest level in five years, driven by improvements across various industries [1] - The Stanbic Bank Kenya Purchasing Managers' Index (PMI) rose to 55.0 in November, up from 52.5 in October, marking the highest value since October 2020 [1] - The surge in business activity is translating into the strongest hiring spree in over two years, with significant signs of strengthening in the labor market, as employment growth accelerated for the tenth consecutive month [1] Industry Performance - Five monitored sectors, including services, construction, and manufacturing, all reported growth, indicating broad-based improvements across the economy [1] - The increase in the PMI reflects a robust recovery in the private sector, suggesting positive momentum for future economic activities [1]

Group 1 - The Eurozone economy unexpectedly rose to its highest level since May 2024, driven by strong performance in Germany, despite weakness in France [1] - The Composite Purchasing Managers' Index (PMI) increased from 51.2 in September to 52.2 in October, surpassing the critical threshold of 50 that separates economic expansion from contraction [1] - The growth was primarily supported by the services sector, with Germany achieving its best monthly performance since May 2023, while France's PMI has declined for 14 consecutive months due to political turmoil [1] Group 2 - The European Central Bank (ECB) is unlikely to lower interest rates further, maintaining borrowing costs as inflation approaches the 2% target [2] - The recent PMI data supports the ECB's decision to keep rates unchanged, indicating resilience in the Eurozone economy despite U.S. tariff increases [2] - Service sector price inflation remains moderate, with a slight increase in sales price inflation but still close to long-term averages, suggesting low short-term risks [2]

Core Viewpoint - The Eurozone economy unexpectedly contracted in May, with the services sector experiencing its worst performance in 16 months, overshadowing a slight improvement in manufacturing [1][5]. Group 1: Economic Activity - Eurozone private sector activity unexpectedly shrank in May, primarily due to weak performance in the services sector [5]. - France's economic activity has contracted for nine consecutive months, with a composite PMI rising slightly from 47.8 in April to 48 in May, still below the 50 threshold [4][7]. - Germany's PMI data also disappointed, with a decline in the services sector, although infrastructure reforms and military rebuilding plans by the new government may provide future support [10]. Group 2: PMI Data - The Eurozone composite PMI fell from 50.4 in April to 49.5 in May, below analysts' expectations of 50.6 [6]. - The services PMI preliminary value was 48.9, lower than the expected 50.5 and previous value of 50.1 [6]. - The manufacturing PMI preliminary value was 49.4, slightly above the expected 49.2 and previous value of 49 [6]. Group 3: Sector Performance - The weak performance of the services sector is the key factor leading to the overall PMI decline, indicating a more challenging road to recovery for the Eurozone economy [5]. - Despite the overall poor data, the Eurozone's manufacturing sector showed improvement, marking the first time since the pandemic began that manufacturing outperformed services [5]. - In Spain and other Southern European countries, performance was relatively better, with strong tourism demand reported by Ryanair Holdings Plc [13].