Nigeria: PMI edges up in November but still points to contraction
December 5, 2016
In November, the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose from 47.5 in October to 47.7. Despite the increase, the index remains below the 50-threshold that separates contraction from expansion in business conditions.
November’s reading reflects an increase in new orders for the first time since January. Another sharp decline was recorded in output and purchasing activity. Staffing at Nigerian firms remained stable following a modest increase in October. Regarding price developments, input costs rose at the slowest pace since January while output prices increased at a faster pace than in the month prior owing to improved client demand.
Commenting on the result, IHS Markit analyst Ayomide Mejabi stated that, “while the overall PMI has actually improved marginally since the end of the third quarter […] there is no assurance that the moderation in the pace of contraction in economic activity will be enduring.”