The most recent Stanbic IBTC PMI survey has revealed that the business environment in Nigeria improved in December 2023, with the Purchasing Managers Index climbing to 52.7 from 48.0 in November.
The PUNCH reported that despite the increase, the business forecast for the new year is the lowest it has been since 2014.
The increase was the most since June 2023, when the index was 53.2. Despite the current macroeconomic issues, the rise in PMI indicates a healthy improvement in the private sector.
According to the report, demand circumstances showed signs of improvement, resulting in a large increase in new orders following two consecutive falls in October and November.
Similarly, commercial activity recovered and expanded significantly during the month. Despite this encouraging trend, sector-specific data showed that wholesale and retail activity continues to fall.
Both input and selling price inflation surged considerably in December, but had minimal impact on the report because new orders increased significantly.
The Director of Equities Market Research at Stanbic IBTC, Muyiwa Oni, commented on the news, saying, “The headline PMI returned to growth territory for the first time in three months in December 2023, registering 52.7 from 48.0 in November.
“Nonetheless, respondents’ feedback continues to reflect significant inflationary pressure, with both buying and selling prices rising at faster rates than in November.”
