Nigeria PMI September 2020


Nigeria: PMI retreats in September but remains in growth territory

October 5, 2020

The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) slipped from its six-month high of 54.6 in August to 52.5 in September. Despite the dip, the PMI remained above the 50-threshold that separates improvement from deterioration in business conditions, pointing to still-solid growth of private sector activity.

September’s decline was primarily driven by softer expansions of both output and new orders; that said, their pace of growth remained solid amid improved demand conditions following the relaxation of pandemic-related restrictions. Weakened sentiment also weighed on the index. Encouragingly, firms stepped up the pace of hiring, with employment growth picking up to a seven-month high. On the price front, input cost inflation quickened, partly due to FX pressures. Lastly, although remaining positive, business confidence dropped to its lowest level since the inception of the survey in January 2014 due to firms experiencing planning difficulties for the year ahead.

FocusEconomics Consensus Forecast panelists expect fixed investment to contract 4.8% in 2020. In 2021, fixed investment is seen increasing 2.5%, which is down 1.3 percentage points from last month’s forecast.

Author:, Economist

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Nigeria PMI Chart

Nigeria PMI September 20 20

Note: Purchasing Managers’ Index. Readings above 50 indicate an improvement in business conditions while readings below 50 point to deterioration.
Source: Stanbic IBTC Bank Nigeria and IHS Markit.

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