Nigeria: PMI posts a record high in March
April 6, 2018
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) jumped to 58.8 in March, well above the 56.0 print recorded in February and marking the fastest pace of improvement in the history of the survey and a new record high. As a result, the indicator lies further above the 50-point threshold that separates expansion from contraction in business conditions, pointing to robust growth in the private sector.
March’s strong performance was driven by a solid acceleration in new order growth amid stronger domestic demand and an upturn in foreign demand. Consequently, output growth also picked up in the month, and job creation grew at an unprecedented pace. On the price front, input price inflation rose sharply in March, underpinned by higher staff and raw material costs. As a result, some firms raised output prices to increase their profit margins.
Nigera Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists expect fixed investment growth to reach 2.4% in 2018, which is down 0.7 percentage points from last month’s forecast. In 2019, fixed investment is seen increasing 1.9%.
Author: Lindsey Ice, Economist