Nigeria: Private-sector conditions improve at stronger clip in November
The Purchasing Managers Index (PMI)—produced by Stanbic IBTC Bank and S&P Global—came in at 54.3 in November, up from October’s 53.6. November’s result marked the best performance since April. As such, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in private-sector operating conditions compared to the previous month.
Novembers upturn was chiefly due to new business expanding at the fastest rate in six months thanks to stronger demand. This, in turn, translated into stronger output growth. Increases in new orders led to the onboarding of staff in November, with the job creation rate hitting a three-month high. Turning to prices, higher staffing and raw material costs, exacerbated by an unfavorable exchange rate, drove cost inflation up in November. Consequently, output charges rose at a stronger pace. Lastly, firms sentiment moderated further to the lowest rate since the series began in January 2014.