Nigeria’s PMI increases to 52.7 but the business outlook for 2024 stands at a decade-low

The latest Stanbic IBTC Purchasing Managers Index (PMI) for Nigeria reveals that the private sector returned to growth for December rising from 48.0 recorded in November to 52.7 in December.

Despite the increase business outlook for the new year stands at its lowest since 2014.

The increase was the highest since June 2023 when the index stood at 53.2. The rise in PMI denotes a healthy improvement in the private sector space despite current macroeconomic malaise.

According to the report, demand conditions exhibited signs of recovery, resulting in a significant upswing in new orders after two consecutive declines in October and November.

Likewise, business activity rebounded and experienced substantial growth during the month. Despite this positive trend, sector-specific data indicated a continued decline in wholesale and retail activity.

Both input price inflation and selling price inflation rose sharply in December but played little role in the report as a significant increase was recorded in new orders.

Commenting on the report, the head of Equities Market Research at Stanbic IBTC, Muyiwa Oni stated,

However, business confidence for the new year dropped for the second consecutive month to a joint lowest since the survey started in 2014.

The report states,