By Eyo Nsima
The October 2021 economic data have indicated improvements in business conditions in Nigeria’s private sector with output, new orders and buying activity hitting the roofs.
In its latest report, the Stanbic IBTC Bank Plc, stated that the headline Purchasing Managers’ Index, PMI, improved to 54.1 in October from 52.3 in September, indicating a sixteenth successive monthly expansion.
It stated: “Sector data indicated that all four subsectors saw faster increases in output. Manufacturers registered the steepest expansion, followed by wholesale & retail, services and agriculture, respectively.
“Firms reportedly had sufficient capacity to complete incoming new orders. Despite this, companies added to their headcounts, although the rate of growth was only modest. Overall input prices rose substantially, which firms linked to unfavourable exchange rate movements as well as higher raw material, staff, and transportation costs. In fact, purchase cost inflation quickened to a fresh series high.
“Firms opted to pass on part of the burden to clients by lifting their selling charges, which they did so at the third quickest rate in the series history. Accelerating input costs led firms to protect against future price hikes by adding to their stockpiles.
“Concerns surrounding prices fed through to sentiment with confidence moderating in October and registering below the average for 2021 so far. Nevertheless, firms remained hopeful that greater investment will encourage output growth in the year ahead.”
