Nigeria: PMI jumps in August
September 3, 2020
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose in August to 54.6 (July: 50.4). As a result, the PMI climbed further above the 50-threshold that separates improvement from deterioration in business conditions, pointing to solid growth of private sector activity amid the easing of Covid-19-related restrictions.
August’s increase was largely driven by a rebound in both output and new orders due to stronger demand, with the latter increasing the most since January. Moreover, employment stabilized in August, after four consecutive months of firms cutting jobs. On the price front, input cost inflation accelerated to a record high according to the survey due to currency weakness and higher raw material prices, which prompted companies to hike selling prices at sharpest rate since the inception of the survey. Lastly, business confidence remained weak on concerns over the impact of the pandemic.