Nigeria: PMI slips in November as protests weigh on output
December 3, 2020
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) fell from 53.5 in October to 50.9 in November. Thus, the index landed slightly above the 50-threshold that separates improvement from deterioration in business conditions, still pointing to growth in private sector activity but at much softer pace.
Output declined for the first time in five months due to the outbreak of country-wide protests, driving the index’s fall. That said, new orders continued to rise at a solid rate, prompting companies to increase their workforce numbers again. On the price front, input cost inflation quickened amid higher raw material costs, with the higher cost burden partly passed on to customers through a hike in output charges. Lastly, businesses remained optimistic overall on an improved outlook on output ahead.
Author: Javier Colato, Economist