Nigeria: PMI rises to two-year high in December
Economic conditions continued to improve at the close of last year, with the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rising to 56.4 in December from 55.0 in November. December’s print marked a two-year high and showed that private-sector operating conditions improved at a stronger pace, with the index moving further north of the neutral 50-threshold that separates expansion from contraction in operating conditions.
The headline improvement came on the back of robust expansions in output and new orders and a record increase in inventories. New orders were driven by upticks in both domestic and foreign demand, which fed into the strongest rise in output since August 2020. That said, employment grew only marginally and input costs rose at the quickest pace in the survey’s history due to higher prices for raw materials and fuel, as well as unfavorable exchange-rate movements. Meanwhile, firms passed on higher costs to customers amid favorable demand dynamics.