Nigeria: Business conditions improve at a stronger clip in July
Nigerian private-sector operating conditions improved at a stronger pace at the beginning of the third quarter. The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose to 53.2 in July from 50.9 in June. Therefore, the index moved further above the neutral 50-threshold that separates an overall improvement in operating conditions from a deterioration.
The stronger improvement was driven by a return to growth in output and a sharper increase in new orders. Consequently, firms scaled up their purchasing activity. That said, employment increased at a softer pace due to elevated costs, which squeezed profits. Turning to prices, input and output price inflation both rose to four-month highs due to a weakened currency and higher fuel prices. Lastly, confidence remained upbeat.