Business operations suffer in November due to inflation.

Nigerian business operations are slowed by rising inflation, with the PMI still below 50.0 points.Business operations suffer in November due to inflation.

PMI tracks business operating environments that affect performance.

PMI readings above 50.0 indicate a business improvement over the previous month, while below 50.0 indicate a decline.

Though there were some signs of improvement midway through the fourth quarter, the Stanbic IBTC’s PMI report released yesterday showed that rising goods prices and unemployment suppressed the PMI in November.

The report said: “Employment was down and companies continued to cut purchasing amid steep price pressures

November saw the headline PMI fall below 50.0 for the fifth month in a row, indicating further private sector business decline.

That said, at 49.6, the latest reading was up from 46.9 in October and showed only a slight decline. After a strong drop in October, new orders rose slightly, easing business conditions.Despite some signs of demand improvement, companies reported that high prices deterred customers.

Business activity fell for the fifth month in a row due to inflation and low demand.

However, the latest cut was small. Sector data showed agriculture and manufacturing output rising but wholesale & retail and services falling.

Stanbic IBTC Bank Head of Equity Research West Africa Muyiwa Oni said: “The Nigerian private sector activities deteriorated further in November, albeit at a less pronounced rate than October. This less severe deterioration was mostly due to new orders growing in November after falling in October. New orders have increased in three of the past four months, though the latest increase was small. Some panellists saw demand rising, but others said high prices deterred customers. Meanwhile, higher energy prices, raw material costs, and currency weakness intensify price pressures in November.