Sunday, September 28, 2025
24.2 C
Lagos

Stanbic IBTC PMI: Economic Rebound Continues in August

The recovery in the Nigerian private sector gathered momentum in August as demand improved following the easing of restrictions related to the coronavirus disease 2019 (COVID-19). Output and new orders rebounded, rising sharply from July. Employment was broadly stable, although excess capacity remained as a result of the severe declines in new business during the second quarter.

Currency weakness led to another record increase in purchase costs, in turn feeding through to arise in selling prices unprecedented since the survey began in January 2014.

The  headline  figure  derived from the survey  is  the Nigeria Purchasing Managers’ Index™ (PMI®), a property of Stanbic IBTC Bank PLC.

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 rose sharply in August to 54.6, up from

50.4 in July.The reading signalled a marked improvement in business conditions, following a return to growth in the previous month.

There bound in new orders continued midway through the third quarter as client demand strengthened following the easing of COVID-19 restrictions. New business increased for the second month running, and to the greatest extent since January.

A similar picture was evident with regards to business activity, which rose at a substantial pace that was much stronger than seen in the previous month.

Despite strong rises in workloads during August, data suggested that the steep contractions seen during the second quarter left residual spare capacity. Companies were therefore able to continue depleting backlogs of work while leaving staffing levels broadly unchanged. The stability of employment did bring a four-month sequence of job cuts to an end, however.

Spare capacity was also reported at suppliers. This, alongside relatively quiet road conditions, meant that vendors were able to speed up deliveries in spite of a marked increase in purchasing activity. Stocks of purchases meanwhile rose sharply for the second month running.

Overall input cost inflation quickened to a fresh series record in August, despite a reduction in staff costs.  The rise in overall input prices was driven by a record increase in purchase costs, in turn largely the result of currency weakness. In response to higher raw material prices, companies raised their own charges. As was the case with input costs, the increase in selling prices was the quickest since the survey began.

Subdued business sentiment was registered again amid concerns around the lasting impact of COVID-19.

spot_img
spot_img

Hot this week

AIICO Deepens Bond with Retirees, Holds Annuity Forum in Lagos, PH

Mr. Gbenga Ilori, Head, Retail Business at AIICO, in...

Sovereign Trust Insurance Holds 30th AGM

L-R: Eric Balogun, Independent Director, Emi Faloughi, Director, Kayode Adigun,...

Unity Bank Shareholders Approve Merger with Providus Bank

  EGM: From left: Mr. Usman Abdulkadir, Executive Director, Risk...

NNPCL: Ogoni Re-entry is a Beacon of Reconciliation through Collaboration

The re-entry into Ogoniland marks a historic turning point...

NLNG, NCDMB Celebrate 122 Graduates of Train 7 HCD Training Program

NLNG in collaboration with the Nigerian Content Development and...

Topics

African Airlines Report 4.7% Passenger Growth in June

The International Air Transport Association (IATA) announced global passenger...

International Rating of insurance companies in Nigeria

By: Babajide Oniwinde Nigerian insurance companies have been charged to...

India to Invest $4bn in Nigeria’s ICT Sector

Mr. Adebayo Shittu, the Minister of Communications say India...

Are ATMs Going Out of Fashion in Nigeria?

By Elvis Eromosele Nigeria is a cash-driven economy. Yet, today,...

CIIN President, Edwin Igbiti, Pays Courtesy Call on Sovereign Trust Insurance

L-R: Sanni Oladimeji, DGM, Risk Management and Compliance, Sovereign...

‘FG Should Support SMEs to Ease Recession’

With the Nigerian economy in recession, support for small...

Law Union & Rock Insurance Unveils Travel, Teen Policies

Law Union & Rock Insurance Plc has released more...

NAICOM Insurance Academy Set for 3rd Qtr Take-Off

Mr. O. S. Thomas Commissioner for Insurance/CEO National Insurance Commission The National...
spot_img

Related Articles

Popular Categories

spot_imgspot_img