By Nkiruka Nnorom
Business conditions in Nigeria’s private sector worsened for the seventh straight month in November.
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 deterioration. This was signaled by the seasonally adjusted Stanbic IBTC Bank Nigeria PMI posting 47.7, up slightly from 47.5.
The latest reading indicated that the pace of contraction had moderated further from August record (46.3), but was nevertheless sharper than the 2016 average (48.4). Commenting on November’s survey findings, Ayomide Mejabi, Economist at Stanbic IBTC said: “While the private sector is still characterised by contraction, the rate of contraction eased in November.
This improvement was attributable to new orders. New orders expanded modestly for the first time since January. “Notably, the pace of contraction in new orders has been broadly decelerating since August. Actual output is still declining, with the pace of contraction accelerating in November. Indeed, every other facet of activity deteriorated in November.
After improving in October to record some growth, employment slumped again. “Though only slight, the expansion of new work was the first since January. Output and purchasing activity both fell regardless, with the decline in the former accelerating to a steep rate. Employment was meanwhile broadly stagnant. On the price front, cost pressures eased in the latest period, whereas charges rose at a faster pace.”
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