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Nigerian private sector contraction eases slightly

Staff Writer | October 7, 2016
Nigeria’s private sector downturn eased slightly from August’s record in September, but remained the secondquickest in the series history.
Nigerian private sector
Nigeria   Stanbic IBTC Bank Nigeria PMI
That rounded off the worst quarterly performance since the survey began at the start of 2014. September saw another steep decline in output, as well as further reductions in new orders, employment and purchasing.

Rising costs continued to squeeze firms’ margins, and charges rose sharply again as a result. 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.

The seasonally adjusted Stanbic IBTC Bank Nigeria PMI picked up from August’s record low of 46.3 in September, but only slightly to 46.8.

That still pointed to a solid deterioration in business conditions, and was lower than any other reading except August’s. The average for the third quarter as a whole (47.3) was the lowest since data collection started in January 2014.