Nigeria: Business confidence falls in January from December's one-year high
January 29, 2016
In January, the Business Sentiment Indicator (BSI) developed by MNI Indicators and Standard Chartered fell 8.7% from December’s one-year high of 67.6 to 61.7, which marked the lowest print since August 2015. That said, the index is firmly entrenched above the 50-threshold that separates contraction from expansion in business conditions.
While January’s decrease reflected losses in all the sub-components of the index, it was mainly felt in new orders and production. On the upside, the interest rate cut in December bolstered sentiment among businesses and both current conditions and future expectations for availability of credit reached a series high. Further, Standard Chartered analysts point out that, “the effect of the Nigerian naira (NGN) exchange rate was the main drag on overall business conditions yet again in January given uncertainty on the timing of an FX adjustment and persistent concern about the availability of FX for imports.”