Private Sector Growth Quickens To Five-month High At 53.7 Points

Purchasing Managers’ Index (PMI) report has grown to 53.7 points in September 2022, showing a rebound in business.

The PMI report released by Stanbic IBTC, which measures monthly business activities and captured at the end of the third quarter, showed that growth in the private sector gathered momentum.

Sharper rises in output and new orders were recorded, while there were emerging signs of capacity pressures. Cost inflation remained elevated, in large part due to currency weakness, while business confidence waned.

The headline PMI rose to 53.7 in September, up from 52.3 in August and signalling a solid strengthening in the health of the private sector at the end of the third quarter. The improvement in business conditions was the most marked since May.

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 report stated that “in line with the headline figure, both output and new orders increased at sharper rates during the month. Firms often linked higher new business to rising demand, with some reporting that customer referrals had supported growth. In turn, output rose for the third month running, and at the fastest pace since April.”

Stanbic IBTC said: “with overall input costs rising at one of the sharpest rates since the survey began, Nigerian companies increased their selling prices accordingly. Although marked, the rate of charge inflation slowed sharply and was the joint-weakest in 21 months.