New Telegraph

Lender’s PMI hits six-month low in January

Stanbic IBTC’s Purchasing Managers’ Index (PMI) eased to 50.7 in January, down from 51.8 in December, the lender announced yesterday. It said the latest reading indicated the softest rate of expansion since July, even though the survey showed an improvement in business conditions in the Nigerian private sector. According to a statement issued by the lender, “readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration.”

“Latest data signaled an expansion in the Nigerian private sector in January, with a solid rise in new orders underpinning growth. However, substantial increases in input costs and selling prices contributed to a moderation in expansion of outputs and purchasing activity.

As a result, firms looked to cut costs by reducing their workforce. Nevertheless, the degree of positive sentiment improved to the highest since April last year, with hopes of greater demand fueling optimism.

“New order inflows rose solidly in January, despite the pace of growth moderating from that in December. According to firms, new client wins and an improving demand environment led to the uptick. Output rose marginally, which extended the current period of growth to two months. Anecdotal evidence suggested that a rise in demand offset the negative impacts of higher prices,” the statement added.

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