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Nigeria private sector reaches 16-month high in April

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Staff Writer | May 5, 2017
The health of Nigeria’s private sector continued to improve in April, as the latest survey data indicated the strongest performance for 16 months.
Africa   Stanbic IBTC Bank Nigeria PMI
Growth in output and new orders accelerated further, and were the key factors behind the improved headline PMI™.

On the price front, input price and output price inflation both eased but remained solid.

The headline figure derived from the survey is the Purchasing Managers’ Index (PMI).

Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

At 53.6 in April, the headline PMI rose from 53.0 in March.

This extended the current sequence of expansion in the Nigerian private sector to four months.

Moreover, the rate of improvement signalled was the fastest for 16 months.

In the context of historical data, the index was above the series average since January 2014 (52.6).

Output expansion was a key driver behind the strong headline PMI score.

Growth was steep overall and the fastest signalled for 21 months.

Firm underlying demand, improving business conditions and strong new order books in the Nigerian economy were commonly noted by panellists as explanations for the latest increase in output.

A further rise in new business at Nigerian private sector companies was recorded in April.

The rate of increase in new orders was sharp overall and accelerated from the preceding survey.

Furthermore, the latest rise extended the current sequence of growth to four months.

Despite expansion in both output and new orders, no change in employment was signalled in April as job creation stagnated.

The level of exports sold by Nigerian private sector firms rose for the first time in 16 months in April.

Growth was marginal overall but represented a marked improvement from the steep declines in the final quarter of 2016.

In line with the trend for new business, the volume of inputs purchased by private sector firms increased for the fourth month running and at the fastest pace in 16 months.

Meanwhile, input stocks grew for the fifth successive month.