Nigeria: PMI stable in April
Business conditions in Nigeria’s private sector economy continued to improve, with Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) coming at 52.9 in April, matching March’s print. As a result, the index remained comfortably above the neutral 50-threshold that separates expansion from contraction in business conditions.
The headline reading was driven by solid growth in output and new orders, with demand dynamics improving. Moreover, headcounts rose in the month and firms increased their inventory holdings in anticipation of greater demand. Greater workforce numbers enabled firms to reduce backlogs of work at the second-sharpest rate on record. The headline print was held back by a record-steep rise in inflationary forces amid material shortages. Higher input costs were passed on customers, with output price inflation rising.
Gbolahan Taiwo, economist at Stanbic IBTC Bank, commented:
“The Stanbic IBTC PMI reading at 52.9 in April continues to suggest improved private sector activity as the Nigerian economy continues its recovery following the economic fall-out of the pandemic.”