Nigeria: Business confidence stabilizes in April
April 30, 2015
In April, the Business Confidence Indicator (BSI) developed by MNI Indicators and Standard Chartered remained stable at the previous month’s 61.0. Consequently, the indicator is resting comfortably above the 50-threshold that separates contraction from expansion in business conditions.
April’s reading reflected improvements in three of the five subcategories that make up the index. Despite remaining robust, production and new orders experienced a decline in April. Meanwhile, input prices climbed to a series high in April, mainly due to the weakening of the naira, which boosted prices for imported goods. On the other hand, a weaker currency bolstered export orders in the same month.
According to MNI Indicators and Standard Chartered analysts, the Nigerian economy, “has faced disruption to activity and a pause in firms’ hiring plans and expansion of productive activity as a result of elections, a lower oil price, lower government expenditure and greater FX volatility and availability was disrupted.”