Just as cost pressures weigh on growth, Nigeria’s private sector concluded the third quarter of the year with an expansion in private business conditions. This was disclosed in the Stanbic IBTC Purchasing Managers’ Index report for the third quarter of 2021
Part of the report read, “Material scarcity and unfavorable exchange rates movement exerted upward pressures on costs, however, leading to a record rate of purchase price inflation. Subsequently, this fed through to a steep rise in selling price”.
The report stated that quicker lifts were seen in new orders, employment and stocks of purchases, but output growth moderated for the second month running. Nevertheless, optimism improved to a seven-month high.
The headline figure derived from the survey is the Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration. The headline PMI registered at 52.3 in September, little changed from 52.2 in August, and indicative of a fifteenth consecutive monthly expansion.
Central to the improvement was a solid and accelerated rise in new orders, which panelist mostly connected to getting of new clients
Contrary to the improvement in domestic sales, exports fell and at the quickest rate since December amid persistent international Covid-19 limitations.