Nigeria: Business conditions improve at a softer clip in August
September 1, 2022
Nigerian private-sector operating conditions improved at a softer pace, as the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) eased to 52.3 in August from 53.2 in July. However, the index remained above the neutral 50-threshold that separates an overall improvement in operating conditions from a deterioration.
The headline moderation was driven by softer increases in output and new orders, while price pressures rose to a near record-high. New orders continued to rise due to improving demand dynamics. However, the pace of expansion slowed. Sustained new business inflows supported output. Regarding employment, firms continued to increase headcounts and this enabled them to reduce backlogs of work. Turning to prices, input price inflation was the second-fastest on record due to greater input costs and wages. Lastly, confidence eased to a nine-month low but remained in optimistic terrain.