Nigeria: Business confidence falls in August from July's seven-month high
August 28, 2015
In August, the Business Sentiment Indicator (BSI) developed by MNI Indicators and Standard Chartered fell from July’s seven-month high of 62.2 to 60.8. Despite this drop, the indicator is resting comfortably above the 50-threshold that separates contraction from expansion in business conditions.
August’s reading reflected a deterioration in production, inventories and supplier delivery times, whereas new orders improved. Job conditions remained weak in August. Although input prices declined in the same month, inflationary pressures remain high. Moreover, despite improving slightly, the effect of the naira on the economy remains in contractionary territory, “suggesting that this is still a key constraint for Nigerian businesses. Nigerian businesses are concerned about the likelihood of further FX depreciation. Even more than this, they are worried about the availability of FX for imports.”