New Telegraph

Report: Nigeria’s PMI fell to 52.3 in August

Stanbic IBTC Bank’s Nigeria Purchasing Managers’ Index (PMI) eased to 52.3 in August 2022 from 53.2 in July, signalling another improvement in business conditions, but showing a weaker rate of growth than the long-run series average, according to a report by the lender. The report said that softer upticks were recorded in output, new orders and purchasing activity, while employment rose at a quicker pace, adding that overall input price inflation rose at the second fastest rate on record while sentiment moderated to the weakest since last November.

Noting that PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration, the report said that new orders rose for the twenty-sixth month running in August which panellists attributed to general improvements in customer demand. It, however, said that from July, the rate of growth, regarding new orders, eased as a result of elevated prices. Similarly, the report stated that “higher sales underpinned a second successive uptick in output in the Nigerian private sector.

The rate of growth was broadly in line with that seen in July but was softer than the longrun series average. “Of the four monitored sub-sectors, three registered output growth. Agriculture topped the rankings, followed by wholesale & retail and services, respectively.

Manufacturers, meanwhile, recorded a fall in output levels during August.” On job creation, the report said that despite slowdowns in output and new order growth, firms added to their headcounts at a quicker pace in August. “The overall rate of job creation was modest and the highest for three months. Subsequently, firms continued to reduce their backlogs, but the rate of decline was fractional amid difficulties sourcing some key inputs,” it stated. On the Suppliers’ Delivery Times Index, the report said: “Advance payments led to quicker supplier delivery times in August. In fact, vendor performance improved to the greatest extent in three months. Quicker lead times allowed firms to add to their inventory holdings. Stocks of purchases rose at a slower pace to that seen in July, however.” According to the report, higher commodity and transportation expenses exerted upward pressures on purchase costs.

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