Nigeria: Business conditions improve at a stronger clip in September
October 4, 2022
Private-sector operating conditions in Sub-Saharan Africa’s largest economy improved at a stronger clip at the close of the third quarter. The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose to 53.7 in September from 52.3 in August. Consequently, the index moved further above the neutral 50-threshold that separates an overall improvement from a deterioration in operating conditions.
The headline improvement reflected stronger growth in activity and new business inflows, while backlogs of work increased on the back of healthier demand dynamics. Output rose for the third straight month as a consequence. That said, employment growth moderated somewhat in the month. Turning to prices, input costs rose sharply as the currency weakened notably and salaries increased in response to inflation. Output price inflation remained elevated, despite easing to a near two-year low rate of change. Lastly, confidence levels dropped to their lowest levels since August 2021, while staying in positive territory.