Nigeria: PMI climbs to 17-month high in November
December 4, 2019
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) edged up from 56.9 in October to 57.7 in November, the highest reading in nearly a year-and-a-half. As a result, the PMI rose further above the 50-threshold that separates expansion from contraction in business conditions, pointing to solid growth in the private sector.
November’s upturn mainly reflected a steep rise in business activity, which was largely supported by upbeat new order growth. Moreover, firms continued to raise their staffing levels, though the latest addition was modest. On the price front, input cost inflation accelerated to a 13-month high, stoked by the closure of land borders and input shortages. Firms passed these higher cost burdens onto customers, with selling prices increasing solidly in the surveyed month. Lastly, business sentiment ticked up and remained firmly positive, propped up by expectations of new product launches and business expansion.
Author: Javier Colato, Economist