Wednesday, July 2, 2025
23.4 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
spot_img

Hot this week

Stanbic IBTC Bank Nigeria PMI: Output Growth Slows but Business Confidence Rises Sharply

The Nigerian private sector remained in growth territory as...

NIA: Insurance Week Designed to Boost Industry Awareness in Nigeria

Mr. Kunle Ahmed Chairman Nigerian Insurers Association (NIA) The Nigerian Insurers Association...

NAICOM Chief: The Future of Nigeria Depends on How We Manage Risks

Keynote Address by Mr. Olusegun Ayo Omosehin, Commissioner for...

SEC Canvasses Advanced Financial Inclusion by 2030

The Securities and Exchange Commission (SEC) has stressed the...

NCDMB to Champion “Nigeria First” Policy in Oil and Gas Sector

The Nigerian Content Development and Monitoring Board (NCDMB) has...

Topics

AIICO Earns Double Honours at 2024 Almond Insurance Industry Awards

L-R: Ademola Adenekan, Award Presenter, Titilola Ajigbotafe and Oluyemi...

Why Women are Driving Rethinking of the Sales Model (2)

When you recognise that women are not just the majority but actually the vast majority of consumers, and that their power is only going to increase, it completely changes the commercial urgency of getting to grips with women buyers.’ In a day and age when everyone can buy almost anything from anywhere, the “feelgood” factor at every customer touchpoint has never been more important. Youth is Not What it Appears to Be While many marketers still seem obsessed with talking to Gen X and Y consumers, and still think of them as the longest term market worth tapping, the most powerful women financially are often past their youth.

FG Commends Waltersmith Refinery, NCDMB for Improving Domestic Refining Capacity

L-R: The President Waltersmith Group; Mr. Abdulrasaq Isa, Managing...

ADB: Strategies for Africa’s Transformation at 2016 Annual Meetings

The African Development Bank Group will unveil its new...

NDIC, EFCC Explore Areas of Partnership During Courtesy Visit

L-R: Executive Director (Corporate Services) NDIC, Hon. (Mrs.) Omolola...

Stanbic IBTC Pension Managers Inspires Women to Shape the Future

According to a United Nations Women publication, although women's...

Konga.com Appoints Shola Adekoya as New CEO

Nigeria’s largest online mall company, Konga Online Shopping Limited,...
spot_img

Related Articles

Popular Categories

spot_imgspot_img