New Telegraph

Report: Nigeria’s February PMI rises to 57.3

Nigeria’s Purchasing Managers’ Index (PMI) rose to 57.3 in February, its highest level in over two years, from 53.7 the prior month, according to Stanbic IBTC Bank’s latest Nigeria PMI report. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below that mark indicate a deterioration.

In a press release, the lender said that the key driver for the growth “was the joint-quickest rise in new orders for over two years,” adding that “firms mentioned a general improvement in demand from both domestic and international mar-kets,” which made companies to lift their output levels for the fifteenth month in succession. It stated: “February PMI data for Nigeria’s private sector pointed to a substantial improvement in business conditions. Quicker expansions in output, new orders, employment and purchasing underpinned the latest improvement.

At the same time, firms were hopeful that higher investments and customer numbers would support output growth over the course of the coming year. “On the cost front, unfavourable exchange rate movements, higher prices for raw materials and rising wages led to a substantial rate of input price inflation. Subsequently, selling charges were lifted sharply. “At 57.3 in February, up sharply from 53.7 in January, the latest expansion pointed to a robust overall improvement in business conditions. Moreover, the latest figure signalled the strongest expansion since November 2019.”

It further stated: “Higher workloads led companies to raise their staffing levels in February, which they did so at a rate that was the quickest since last July. As a result, wages rose at the second-quickest rate in the series history. Backlogs, meanwhile, fell sharply.” According to the statement, sustained periods of output growth as well as improving demand for Nigerian products and services led to higher levels of input buying, thus making firms to add to their inventories in a bid to meet future orders. Similarly, the press release stated that vendor performance continued to improve during the month occasioned by increased competition amongst vendors, advance payments and timely order requests.

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