Nigeria: PMI bounces back from near two-year low in June
July 3, 2019
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) climbed to 54.8 in June from 52.9 in May, which had marked the lowest reading since June 2017. Thus, the PMI rose further above the 50-point threshold that separates expansion from contraction in business conditions, pointing to solid growth in the private sector.
Faster growth in business activity and new orders amid firmer client demand were largely behind June’s increase. Firms raised their staffing levels only marginally, however. On the price front, input cost inflation eased to its lowest in over four years while firms raised selling prices only slightly in a bid to attract customers. Lastly, business confidence remained solid, underpinned by an improved outlook over increased output ahead.
Author: Javier Colato, Economist