Nigeria: PMI moderates in June to 17-month low but remains in expansionary territory
July 1, 2022
Nigerian private-sector operating conditions improved at the weakest pace in 17 months at the close of the second quarter. The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) eased to 50.9 in June from 53.9 in May. That said, the index remained above the neutral 50-threshold that separates an overall improvement from a deterioration in operating conditions.
The drop in the headline reading came on the back of the first fall in output in 19 months and the weakest new order growth in more than two years. Production was hampered by cash shortages in addition to more muted demand, while demand was affected by higher prices. Regarding prices, input price inflation accelerated to the fourth highest rate on record amid higher fuel and raw material prices as well as greater wage bills—employment expanded for the 17th month running in an attempt to increase output levels.