Nairobi, April 7 -- Kenya's private sector activity slipped into a contraction in March, ending a six-month expansion streak as weak consumer demand and rising costs weighed on businesses.

Latest data from the Stanbic Bank Kenya Purchasing Managers' Index (PMI) shows the index dropped to 47.7 in March from 50.4 in February, falling below the 50-point threshold that separates growth from contraction.

The reading signals a deterioration in operating conditions for the first time since August last year, when the reading stood at 49.4 percent, marking a continued slowdown in momentum after four consecutive monthly declines in the index.

Businesses reported a broad-based decline in output and new orders, reflecting tightening household budg...