In April, the Purchasing Managers’ Index (PMI) saw a slight uptick to 51.1, attributed to a deceleration in the rate of price and output charge increases.
The Stanbic IBTC’s PMI survey report released yesterday revealed that inflationary pressures softened in the Nigerian private sector during the month as against the position in the previous month of March.
The headline PMI ticked up to 51.1 in April from 51.0 in March 2024, pointing to a fifth consecutive monthly improvement in business conditions in the country’s private sector.
PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration.
The report stated, “Rates of inflation remained elevated, however, and limited growth of output and new orders as well as leading some firms to reduce employment.
“Conditions for firms continued to be heavily influenced by movements in the naira and the subsequent impact on prices. An improvement in the strength of the currency over the past month led to sharp slowdowns in rates of increase in purchase prices and output charges, although inflationary pressures remained substantial nonetheless. The latest rise in selling prices was the softest in just under a year. Slower price increases were seen across all four broad sectors covered by the survey.”
It noted that although price increases were less pronounced than in March, the extent of inflationary pressures continued to limit rates of growth in output and new orders in April, both of which were unchanged from the previous month.
“Agriculture and manufacturing both saw output increase sharply, while wholesale & retail activity also rose. On the other hand, services activity decreased.
