Tuesday, September 9, 2025
23.9 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

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

Adeosun Leads Confab on Insurance, Pension Growth Opportunities

Stakeholders in the nation’s insurance and pension industry will...

Emirates Celebrates the Spirit of Africa with Latest Brand Campaign

Emirates has launched a pan-African brand advertising campaign that...

FG Pledges Stronger Policy, Funding Support for Creative Industry

The Presidency has reaffirmed President Bola Tinubu’s commitment to...

AIO 2020 Postponed to Oct 3 over Coronavirus

  The Executive Committee of the African Insurance Organisation (AIO)...

Royal Exchange General Insurance Names Ebele Nwachukwu as New CEO

Mrs. Ebele Nwachukwu MD/CEO Royal Exchange General Insurance Company Limited The Board...

…Ecobank Raises Remuneration of EDs by 9% after Sack of Workers

Meanwhile, in its annual report, Ecobank revealed that while...

China, France Create Joint €300M Fund to Invest in Africa

China and France announced on November 15 the official...

African Telcos Prioritise Emerging Opportunities to Stay Afloat, Says IDC

Telcos across Africa are increasingly focusing on effectively maximizing...
spot_img

Related Articles

Popular Categories

spot_imgspot_img