According to the August Purchasing Managers’ Index (PMI) data from Stanbic IBTC Bank, business activity in the Nigerian private sector was largely constant.

The headline PMI increased slightly from 49.2 in July to 49.9 in August, although it stayed just below the 50.0 threshold, indicating a generally stable picture of business conditions in the Nigerian private sector.

According to the study, there was a slight increase in new orders, but it was not fast enough to cause a corresponding increase in business activity, which decreased somewhat. Nonetheless, employment kept rising as businesses processed backlog orders more quickly.

“Input costs have been rapidly increasing for businesses, and since July, the rate of inflation has accelerated.” Consequently, businesses raised their own selling prices more quickly.

According to the explanation, “the trend in business activity, which decreased fractionally for the second consecutive month, was in line with the stagnation in overall operating conditions.” Despite significant inflationary pressures, companies indicated that demand remained sluggish. However, there were some encouraging signals as new orders started to develop again.

“The stagnation in overall operating conditions was in line with the trend in business activity; Nigerian companies posted a fractional reduction in business activity during August, as was the case in July,” stated Muyiwa Oni, head of Equity Research West Africa at Stanbic IBTC Bank, during her speech.

While some companies increased their output due to a resumed boom in sales, others indicated that demand remained poor due to significant cost pressures. Agriculture and services saw a decline in activity, while manufacturing and wholesale & retail saw an increase.