Nigeria: PMI strengthens in April
Operating conditions in the private-sector economy continued to improve and at a stronger pace at the outset of the second quarter. The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose to 55.8 in April from 54.1 in March. This marked the 22nd consecutive month of improving business conditions, with the index remaining above the neutral 50-threshold that separates an overall improvement from a deterioration in operating conditions.
The improvement was driven by accelerating growth in output and new orders as demand dynamics strengthened. Consequently, headcounts were increased and this helped to reduce backlogs of work. Moreover, purchasing activity was scaled up to cope with greater demand and output requirements. Turning to prices, the war in Ukraine drove a further rise in raw material and fuel costs. Amid greater input price costs, output price inflation picked up pace as firms sought to protect margins. Lastly, firms remained upbeat about the outlook, despite sentiment dropping to a four-month low in May.