Nigeria: PMI edges closer to expansionary territory in August
The Stanbic IBTC Bank Nigeria Composite Purchasing Managers’ Index (PMI) improved to 49.9 in August from 49.2 in July. As a result, the index remained below the 50.0 no-change threshold, but signaled a softer deterioration in private-sector operating conditions compared to the previous month.
The improvement was driven by a modest increase in new orders, which returned to growth after a decline in July. Employment levels also rose, marking the fastest increase since last November, as firms worked through backlogs at a quicker pace. However, overall business activity remained stagnant due to muted demand and strong inflationary pressures.
On the price front, input costs reached a five-month high due to increased material and transportation prices, which were exacerbated by currency weakness. Firms passed these costs on to customers, leading to the sharpest rise in output prices in five months. Lastly, business sentiment improved slightly from July’s record low but remained among the least optimistic on record.