Nigeria’s business activity expands for first time in six months
Business activity in Nigeria rose in December for the first time since June, new Purchasing Managers’ Index (PMI) data released on Thursday shows.
The Stanbic IBTC PMI Index report said there were “tentative signs of improvement” in the private sector last month.
The headline PMI moved back above the 50.0 no-change mark for the first time in six months during December. At 52.7, the index was up from 49.6 in November and signalled a solid improvement in the health of the private sector that was the most pronounced since January 2024, according to the report. Readings above 50.0 signal an improvement in business conditions on the previous month, while those below show a deterioration.
“Overall business conditions improved as new orders increased for the second month running and renewed expansions were
seen in output, employment and purchasing,” the report said, adding that rates of inflation remained elevated.
It said new orders increased in December for the fourth time in the past five months, with the pace of expansion quickening to the fastest since May. Respondents noted improving client demand and rising customer numbers.
The report said: “Sustained growth of new orders led to a renewed expansion of business activity in December, thereby ending a five-month sequence of contraction. All four broad sectors signalled rising output at the end of 2024.
“Companies also responded to higher new orders by recording fresh rises in both employment and purchasing activity. Growth of input buying helped firms to accumulate stocks of purchases for the first time in five months.”
