Nigeria: PMI retreats in September but remains in growth territory
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.