Leading Economic Indicator October 2017

The Leading Economic Indicators highlights trends in Consumer Price Indices (CPI) and inflation, interest rates, exchange rates, international trade, agriculture, energy, manufacturing, building and construction, tourism and transport. Consumer Price Index (CPI) decreased from 183.66 points in September 2017 to 182.50 points in October 2017. The overall rate of inflation dropped from 7.06 per cent to 5.72 per cent during the same period. In October 2017, the Kenyan Shilling appreciated against the major trading currencies except for the US Dollar and the Ugandan Shilling.

The average yield rate for the 91-day Treasury bills, which is a benchmark for the general trend of interest rates, decreased from 8.13 per cent in September 2017 to 8.09 per cent in October 2017 while the inter-bank rate rose from 5.52 per cent to 7.85 per cent over the same period.
The Nairobi Securities Exchange (NSE) 20 share index decreased from 3,751 points in September 2017 to 3,730 points in October 2017, while the total number of shares traded dropped from 556 million shares to 314 million shares during the same period. The total value of NSE shares traded dropped from KSh 16.2 billion in September 2017 to KSh 9.4 billion in October 2017.

Broad money supply (M3), a key indicator for monetary policy formulation, increased from KSh 2,988.64 billion in September 2017 to KSh 2,989.36 billion in October 2017. Gross Foreign Exchange Reserves dropped from KSh 1,085.54 billion in September 2017 to KSh 1,030.09 billion in October 2017. Net Foreign Exchange Reserves reduced from KSh 617.64 billion in September 2017 to KSh 570.28 billion in October 2017.