Nigeria: Business confidence ticks down in June
June 30, 2016
In June, the Standard Chartered-MNI Business Sentiment indicator (BSI) fell from May’s 54.5 to 53.7. Despite June’s decline, the index rests comfortably above the 50-threshold that separates contraction from expansion in business conditions.
June’s deterioration mainly reflected that 7 of the 15 current conditions indicators hit new series lows. As a result, Q2 represented the weakest quarter since the current series began. Business sentiment suffered the impact of FX restrictions and scarcity of hard currency since the start of the year. In this regard, Standard Chartered analysts state that the recent liberalization of the FX regime “will have a positive impact on sentiment in the coming months. Much will depend on how much FX availability improves.”