Nigeria Experiences Continued Stagnation in Business Activity, Alongside A Further Decline in Employment

For the second consecutive month, employment saw a decline while business activity remained unchanged in Nigeria, as indicated by the latest Purchasing Managers’ Index (PMI).

According to the most recent monthly PMI report released by Stanbic IBTC Bank on Tuesday, the headline index remained steady at 51.0 in March, unchanged from the previous month. Readings above 50.0 indicate an enhancement in business conditions, whereas those below signify a decline.

Part of the report reads,

“The headline PMI was unchanged at 51.0 in March, the joint-lowest in four months. The latest reading pointed to a slight improvement in business conditions during the month, and one that was softer than the series trend”.

The influence of currency depreciation on the Nigerian private sector was once more apparent in March, with purchase costs escalating at the most rapid rate on record. Consequently, companies heightened their selling prices at an unprecedented pace.

“The rate of expansion in business activity ticked higher, but steep price rises acted to limit demand and the pace of new order growth eased to a four-month low. Meanwhile, employment decreased for the second month running,” it added.

The PMI index, which measures the performance of the private sector, is derived from a survey of 400 companies from agriculture, manufacturing, services, construction and retail sectors.