Tuesday, July 15, 2025
24.3 C
Lagos

Employment in Nigeria Decreased Marginally – PMI Report

 

Despite predictions of a huge rise in unemployment due to the negative impact of the coronavirus pandemic (COVID-19) on businesses in the country, the Nigeria Purchasing Managers’ Index (PMI) report has revealed that employment in Nigeria decreased marginally as about 98% of companies kept their workforce numbers.

The report also showed that new orders, output, employment level, suppliers’ delivery, and stock purchases rose to 40.7 index points in May 2020, a 3.6 increase from 37.1 index points recorded in April 2020.

The Nigeria PMI survey report, a property of Stanbic IBTC Holdings PLC, is a collection of economic indicators obtained from monthly surveys of Nigeria private sector companies. The sectors covered by the survey include agriculture, mining, manufacturing, construction, wholesale, retail and services. The indices vary between 0 and 100, with a reading above 50 indicating an improvement in business conditions compared to the previous month.

According to the PMI report, the Nigerian private sector remained in a deep downturn during May, with rates of decline in output and new orders only slightly softer than the unprecedented falls recorded in April 2020.

Furthermore, the rate of purchase cost inflation hit a record high for the second month running, with the scarcity of materials, currency weakness and higher costs relating to logistics leading to higher purchase prices.

The report further stated that due to the lockdown and restrictions on operations, firms experienced delays to orders received which resulted in an increase in backlogs of work for the second month running. While suppliers’ delivery times shortened slightly, reduced activity requirements led to a second successive decline in input buying while inventory holdings fell.

The Nigeria PMI report is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%).

It showed an increase in companies’ selling prices at a marked pace in May as a result of the higher purchase costs and the rate of output price inflation accelerated to a new record level.

Although business confidence dropped to a 29 month low in May, the rate of contraction is easing slightly as a result of relaxing the lockdown restrictions.

spot_img
spot_img
spot_img

Hot this week

NAICOM, Insurance Industry Mourn Buhari

It is with profound sadness that we received the...

Polaris Bank Partners Woodhall Capital, UK, Lagos State in ₦1.5bn Creative Economy Fund

L-R- Abimbola Ozomah, Executive Director, Polaris Bank; Mojisola Hunponu-Wusu,...

Heirs Insurance Group Reports N61bn GWP in 2024, an Increase of 70%

Heirs Insurance Group (HIG), Nigeria’s fastest-growing insurance group, has...

Stanbic IBTC Holdings Meets CBN’s N200bn Recapitalisation Policy

In a landmark achievement that highlights the steadfast confidence...

SanlamAllianz Partners NCRIB on 2025 Empowerment Series

Dr. Abosede Adegbite, Consultant, Family Physician; Tope Adaramola, Executive...

Topics

Leadway Group Hosts Media Training to Elevate Financial Reporting

Leadway Group, Nigeria's leading non-banking financial services group, has...

Arthur Andersen: Fall From Grace-A Sad Tale of Greed!

At "Andersen U.," the lush, 150-acre campus where Arthur Andersen LLP has trained tens of thousands of new recruits, there's a shrinento ethical accounting. A display in the Andersen Heritage Center is devoted to yellowing press clippings of a long-ago campaign to clean up the accounting industry by Leonard Spacek, who led the firm from 1947 to 1963. In one, he accused Bethlehem Steel of overstating its profits in 1964 by more than 60%. In another, he bashed the Securities and Exchange Commission for failing to crack down on companies that cooked their books, saying that at best the regulatory agency has been "a brake on the rate of retrogression in the quality of accounting."

Stanbic IBTC Bank Nigeria PMI: New Order Growth Hits 6-Month High in Nov

Business conditions continued to improve markedly in the Nigerian...

NISS Seeks Collaboration with NCC to Improve National Security

  National Institute of Security Studies (NISS) has engaged the...

Lower Trade, Higher Poverty Rate Are Cousins

Nigeria is not just a place to set up...

‘Recapitalisation will Strengthen Banks in Nigeria’

  The International Monetary Fund (IMF) says recapitalisation will strengthen...

NPA Reiterates Commitment to CSR in Visit to IDPs

The Management of the Nigerian Ports Authority (NPA) has...

Emirates, flydubai Partnership Announce First Codeshare Routes

Following the commencement of their partnership, Emirates and flydubai...
spot_img

Related Articles

Popular Categories

spot_imgspot_img