Nigeria: PMI hits over two-year high in February
Business conditions in Nigeria’s private sector economy improved at a stronger pace in February, with the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) hitting an over two-year high of 57.3, up from January’s 53.7. As such, the index moved further north of the neutral 50-threshold that separates an overall improvement from a deterioration in operating conditions.
The headline improvement was driven by stronger growth in output, new orders, employment and purchasing activity. A general improvement in both domestic and foreign demand underpinned the joint-strongest pace of growth in new orders, which in turn led to the 15th consecutive month of increasing output levels. Moreover, payrolls expanded at the strongest rate since July 2021. Turning to prices, a depreciating currency, higher prices for raw materials and rising wages drove input price inflation. The greater cost burden was passed on to customers, as output prices rose sharply.