Sunday, September 7, 2025
24.9 C
Lagos

Stanbic IBTC: Nigeria PMI Reveals Improving Business conditions, Stronger Client Demand

February data signalled another modest expansion in the Nigerian private sector, underpinned by solid growth in new orders and output. Companies continued to expand their purchasing activity and resumed hiring efforts during the month. Signs of spare capacity were again evident, with a fresh record reduction in backlogs registered.

Meanwhile, unfavourable exchange rate movements, higher material costs and a rise in wages added to strong inflationary pressures with overall input prices increasing at a record pace.

The headline figure derived from the survey is the Purchasing Managers’ Index (PMI). 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 registered at 52.0 in February, up from 50.7 in January, indicative of a stronger improvement in overall business conditions. New order inflows rose sharply, with the pace of growth accelerating during the month.

The improving demand environment supported growth in output which was solid and extended the period of expansion to three months. Despite the continuation of coronavirus disease 2019 (COVID-19) restrictions in foreign markets, exports rose during the month, with foreign demand for Nigerian goods and services showing signs of improvement.

To support higher output volumes, companies added to their purchasing activity for the eighth month in succession. Consequently, firms raised their inventory holdings in anticipation of greater output in the months ahead. Vendor performance also improved, although the degree at which lead times shortened eased to the softest in nine months.

Elsewhere, further signs of spare capacity were signalled, with backlogs falling at the most marked rate in the series. Nonetheless, firms added to their workforces, with employment rising marginally. The rate of overall input price inflation quickened to the strongest in the series, largely reflecting higher purchase costs. According to panellists, higher material costs and unfavourable exchange rate movements contributed to a sharp uptick.

However, the stronger demand environment allowed firms to pass on higher prices, with charges rising substantially. Looking ahead, sentiment regarding output over the next 12 months reached a ten-month high as business expansion plans fuelled positive expectations. That said, the degree of optimism remained below the long-run series average suggesting pandemic uncertainty weighed slightly on hopes for the future.

 

spot_img
spot_img

Hot this week

Nigeria, Brazil Central Banks Deepen Economic, Financial Co-operation

Nigeria’s Central Bank Governor, Olayemi Cardoso, has held talks...

Ecobank Nigeria to Host Second Edition of Design & Build, Showcasing Premier Innovators in Design, Construction

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

Expert: Fintech, Financial Inclusion Critical for Sustainable Growth of Nigerian Economy

A renowned economist, Dr. Biodun Adedipe, the Chief Consultant/CEO,...

Sterling Bank Marks One Year of Africa’s Groundbreaking Core Banking System

Number one Best Workplace in Banking in Nigeria and...

Topics

BREAKING NEWS! MTN CEO Resigns over N1.04tr NCC Fine

Mr. Sifiso Dabengwa, the Chief Executive Officer of MTN Group has resigned with immediate effect over the N1.04 trillion ($5.2bn) fine imposed on MTNN Nigeria by the Nigerian Communications Commission (NCC) for failing to deactivate unregistered SIM cards. The resignation of Dabengwa was announced by the company early Monday.

Standard Chartered Mobile Banking Targets 1m in Nigeria, Others

Standard Chartered Bank is bringing its newest mobile and...

‘Linkage Assurance Will Meet N10bn Capital Base by 2nd Qtr’

   L-R: Okanlawon Adelagun, Executive Director, Technical, Linkage Assurance Plc;...

Capital Express Assurance Sponsored FASU 2024 Games Ends in Style

The 2024 FASU Games sponsored by Capital Express Assurance...

Aiteo Founder, Peters, Wins Forbes Oil & Gas Leader of the Year Award 2018

R-L: Benedict Peters, Founder of AITEO Group receiving the...

Commonwealth Short Story Award Winner Releases The Talent Coach

Dr. Frederick Mordi, a Commonwealth Short Story Award winner,...

AIICO Commits to ESG Adoption, SDGs

Left-right: Adebola Basibo-Odoru (Annuity Product Officer), Leonard Okereafor (Agric...

NCC Hosts 1st Forum on Emerging Telecoms Technologies Research, Innovation

The Nigerian Communications Commission is set for its maiden...
spot_img

Related Articles

Popular Categories

spot_imgspot_img