Nigeria: Business confidence in April rebounds from March's series low
April 29, 2016
In April, the Standard Chartered-MNI Business Sentiment indicator (BSI) rose from March’s all-time low of 51.4 to 52.6. As a result, the index is further above the 50-threshold that separates contraction from expansion in business conditions.
April’s improvement mainly reflected gains in new orders, job prospects, supplier delivery times and inventories. On the other hand, the production sub-gauge deteriorated further in the same month. Standard Chartered analysts point out that, “firms reported that higher input prices and Central Bank of Nigeria (CBN) policy constrained demand in April. Both domestic and international demand for Nigerian goods remained weak, indicating that the real economy may be feeling the impact of current FX policy and rising input price pressures. Firms surveyed also reported that their financial positions had reached a series low as interest rates paid increased, credit was less available and the Nigerian naira (NGN) exchange rate continued to damage their businesses.”