City in Nigeria

Nigeria PMI February 2024

Nigeria: Private-sector growth in Nigeria slows amid inflationary pressures

The Stanbic IBTC Bank and S&P Global Nigeria Composite Purchasing Managers’ Index (PMI) fell to 51.0 in February from 54.5 in January. As a result, the index remained above the 50.0 no-change threshold but signaled a softer improvement in private-sector operating conditions compared to the previous month.

February’s deceleration was primarily due to weaker demand, resulting in lower growth in output and new orders. The slowdown was further exacerbated by the first decrease in employment in ten months, scaled-back purchasing activity and a reduction in outstanding business for the first time in three months. Looking at the sectoral breakdown, manufacturing and wholesale retail activities contracted, while activity in the agriculture and services sectors strengthened.

Meanwhile, the period saw unprecedented price pressures, with both input costs and output prices rising at the sharpest rates since data collection began in January 2014. This surge in prices, largely driven by exchange rate weakness and higher fuel prices, significantly dented demand, and pushed business sentiment to the lowest level on record. That said, firms remained somewhat optimistic about the year ahead.

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