Nigeria: Business sentiment surges in November
December 2, 2016
In November, the Standard Chartered-MNI Business Sentiment indicator (BSI) increased markedly from 57.2 in October to 60.9 in November. November’s print, which marks the best print since January, was underpinned by improved business activity prior to the holiday season in December.
November’s print reflected an improvement in 9 out of the 15 current conditions indicators and in 10 of the 15 future expectations indicators. Production and new business logged its highest reading since December 2015 and survey respondents held a more optimistic outlook on business activity in the next three months. Nevertheless, the weak order backlogs, inventories and credit availability reading reflected onongoing weakness in the Nigerian economy.
Concerning economic prospects in Q4, Standard Chartered analysts noted that, “the results from our BSI surveys in October and November support a more positive growth outlook for Q4-2016, following a 2.24% [year-on-year] contraction in Q3-2016”.