Thursday, March 12, 2026
28.1 C
Lagos

Stanbic IBTC Bank PMI: Output Returns to Growth, But Cost Pressures Limit Demand

Strong cost pressures meant that firms operating in the Nigerian private sector remained under pressure in September.

Although new order growth quickened, helping to support a renewed increase in business activity, rates of expansion in each were only modest. Input prices increased at one of the sharpest rates on record, largely due to exchange rate weakness and higher fuel costs.

The headline figure derived from the survey is the Stanbic IBTC Purchasing Managers’ Index. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

The headline PMI posted 51.1 in September, up from 50.2 in August but still only just above the 50.0 no-change mark. As such, the index signalled a slight monthly improvement in business conditions.

New orders increased for the sixth month running in September as some firms signalled an improvement in demand. While the rate of expansion quickened from that in August, it remained only modest as market conditions remained weak and customers were deterred by price hikes.

Output returned to growth, meanwhile, following a slight reduction in August. In a similar vein to new orders, however, the pace of increase was only modest amid widespread demand weakness. Three of the four monitored sectors saw output expand, the exception being manufacturing.

Sharp rises in prices were a key factor limiting demand in the private sector at the end of the third quarter. Overall input costs rose at a pace that was only marginally weaker than August’s survey record.

Purchase costs were up substantially, mainly due to exchange rate weakness and higher fuel costs. Meanwhile, efforts by companies to help their staff deal with higher transportation costs meant that wages were raised markedly. The rate of staff cost inflation was only marginally softer than the series record posted in August.

Sharp increases in purchase costs fed through to a further steep rate of selling price inflation, despite the latest rise being the weakest since May.

Employment increased for the fifth successive month in September, albeit only slightly. Firms also expanded their purchasing activity, but the rate of growth eased to the weakest in six months. This was also the case with regards to stocks of purchases.

Suppliers’ delivery times shortened amid competition among vendors, prompt payments and quiet traffic conditions.

Confidence in the year-ahead outlook for output was unchanged in September, thereby remaining among the weakest on record. Those companies that predicted a rise in activity linked this to plans to take on extra staff to help with business expansions.

 

spot_img
spot_img
spot_img

Hot this week

NGX Group, IFC, CSCS, WIMBIZ Convene Leaders to Advance Gender Equality at 2026 Ring the Bell Ceremony

Nigerian Exchange Group Plc (NGX Group), in collaboration with...

Union Bank of Nigeria Marks Int Women’s Month 2026 with Inclusion-First “Give to Gain” Campaign

L-R: Chief Talent Officer, Union Bank of Nigeria, Omayuli...

NAICOM: 20 Insurance Firms Seek Capital Verification Ahead July 31 Recapitalisation Deadline

The National Insurance Commission (NAICOM) says 20 operators in...

FG Inaugurates Committee on Grid Asset Management Company to Boost Power Sector

President Bola Tinubu has constituted an 11-member committee to...

Tinubu Approves Posting of 31 Career, 34 Non-Career Ambassadors

President Bola Ahmed Tinubu has approved the postings of...

Topics

How Access Bank is Supporting Women Driving Africa’s Growth Story

Across Africa, women are fast becoming the heartbeat of...

Cornerstone, Custodian Facing N486.5m Lawsuit on Allegation of Non-Payment of Claims

Cornerstone Insurance Plc and Custodian Investment Plc have been...

Niger Insurance Plans Strategic Transformation, Injection of Capital

Niger Insurance Plc is set to restructure its Board,...

NAIPE 10th Anniversary Conference Attracts 28 Corporate Sponsors

  ‎Twenty-eight organisations including insurance companies, insurance institutions, broking firm,...

Stanbic IBTC FUZE Talent Show 2025 unveils Amy Aghomi as New Fashion Judge

The Stanbic IBTC FUZE Talent Show 2025, themed “The...

NGX Highlights Opportunities in Green, Sukuk Bonds

Nigerian Exchange Limited (NGX) continues to drive the development...
spot_img

Related Articles

Popular Categories

spot_imgspot_img