PMI hits 52.7 in December – Report

The business environment in Nigeria recorded an improvement in December 2023 with the Purchasing Managers Index rising to 52.7 from 48.0 in November, according to the latest PMI report released by Stanbic IBTC.

Despite the increase, the business outlook for the new year stands at its lowest since 2014.

The increase was the highest since June 2023 when the index stood at 53.2. The rise in PMI denotes a healthy improvement in the private sector space despite the current macroeconomic challenges.

The report noted that demand conditions exhibited signs of recovery, resulting in a significant upswing in new orders after two consecutive declines in October and November.

Likewise, business activity rebounded and experienced substantial growth during the month. Despite this positive trend, sector-specific data indicated a continued decline in wholesale and retail activity.

Both input price inflation and selling price inflation rose sharply in December but played little role in the report as a significant increase was recorded in new orders.

Commenting on the report, the head of Equities Market Research at Stanbic IBTC, Muyiwa Oni said, “The headline PMI returned to expansion territory for the first time in three months in December 2023, posting 52.7 from 48.0 in November.

“Nevertheless, feedback from respondents continues to show intense inflationary pressure, with purchase costs and selling prices each rising at sharper rates than in November.

“We expect inflationary pressures to remain elevated in the near term.”