Nigeria: Business confidence reaches another year-high in October
October 30, 2015
In October, the Business Sentiment Indicator (BSI) developed by MNI Indicators and Standard Chartered jumped from September’s 64.6 to 65.3, which marked the highest reading so far this year. The indicator continues to rest comfortably above the 50-threshold that separates contraction from expansion in business conditions.
October’s rise mainly reflects expansions in new orders, employment and production. On the other hand, order backlogs and supplier delivery times recorded a decline. Analysts believe that businesses increased staffing levels in anticipation of Christmas. The possibility that the new government could be formed soon may also have boosted business sentiment. Despite the increase, the survey reported that, “with oil prices likely to remain low and reports of persistent FX shortages, sentiment is likely to remain constrained. While our BSI suggests that sentiment and economic activity may have picked up in recent months, it also suggests that growth in 2015 is likely to be below 2014 levels.”