Nigeria: PMI falls to near two-year low in May
June 7, 2019
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) edged down from 55.5 in April to 52.9 in May, the lowest reading since June 2017. Despite the dip, the PMI lies above the 50-point threshold that separates expansion from contraction in business conditions, pointing to solid growth in the private sector.
Weaker growth in business activity and new orders was largely behind May’s fall. That said, growth of new export orders quickened to a year-to-date high amid firmer client demand. In addition, firms continued to increase their staffing levels in May, albeit modestly. On the price front, both input cost and output charge inflation slowed compared to April. Lastly, although business confidence slid to its lowest point in the year thus far, it remained solid overall.
Author: Javier Colato, Economist