Nigeria: PMI jumps to over one-year high in August
September 4, 2019
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) jumped from 54.6 in July to 56.4 in August, the highest reading since June 2018. As a result, the PMI climbed further above the 50-point threshold that separates expansion from contraction in business conditions, pointing to solid growth in the private sector.
Stronger growth in both business activity and new orders were largely behind August’s increase. Notably, new business rose at the fastest clip in 14 months amid firmer client demand. Consequently, firms raised their staffing levels at a robust pace. On the price front, input costs quickened sharply amid higher raw material prices but output charges rose only marginally. Lastly, business sentiment remained upbeat, reflecting a positive outlook over new business ahead.
Author: Javier Colato, Economist