Nigeria PMI April 2016

Nigeria

Nigeria: Economic conditions stabilize in April

May 5, 2016

In April, the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose from March’s 49.6 to 50.0. As a result of April’s improvement, the indicator sits at the 50-threshold that separates contraction from expansion in business conditions.

April’s increase reflected a stable new orders reading and a better print for stocks. According to an economist at Stanbic IBTC Bank, “after two consecutive months of deterioration, business conditions stabilized somewhat. That being said, the output PMI fell for the third straight month, suggesting that businesses continue to struggle within a weak macroeconomic context. Furthermore, the sharp fall in international orders of Nigerian goods and services is concerning. It is plausible that the uncertainty around the foreign exchange mechanism has influenced foreign businesses to stay out of the Nigerian market for the time being. Clearly, a coherent economic plan and its delivery is key to improving business sentiment both domestically and internationally. In the meantime, price pressures persist as selling prices continue to increase at a fast pace due to petrol supply challenges and the weak exchange rate on the parallel market.”

FocusEconomics Consensus Forecast panelists expect gross fixed investment growth to reach 5.5% in 2016, which is down 0.3 percentage points from last month’s forecast. For 2017, panelists forecast an expansion of 6.3%.


Author: Ricard Torné, Head of Economic Research

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Nigeria PMI Chart


Nigeria PMI April 2016

Note: Purchasing Managers’ Index. Readings above 50 indicate an expansion in business conditions while readings below 50 point to a contraction.
Source: Stanbic IBTC Bank Nigeria and Markit


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