In a surprising twist, Nigeria’s business activity witnessed a welcomed uptick last month, signaling a notable reversal from the decline experienced in August 2023. This exciting development comes as a result of the latest Purchasing Managers’ Index (PMI) report released on Tuesday.
Just a month ago, analysts had been anticipating further decline in September, fueled by mounting inflationary pressures stemming from the removal of petrol subsidies and the naira devaluation, both implemented in the second quarter of the year, as reported by BusinessDay.
However, the most recent data from Stanbic IBTC Bank’s PMI, compiled by S&P Global Market Intelligence, paints a different picture. The headline index surged to 51.1 in September, a substantial improvement from the previous month’s 50.2, which had marked the lowest point in the past five months.
For those familiar with PMI metrics, readings above 50.0 signify an improvement in business conditions, offering a glimmer of hope in Nigeria’s economic landscape. Conversely, readings below 50.0 indicate a deterioration.
The accompanying PMI report noted, “Strong cost pressures meant that firms operating in the Nigerian private sector remained under pressure in September,” highlighting the challenges businesses continue to face despite this positive shift in the index.
This resurgence in business activity is a promising sign for Nigeria’s economic recovery, and it will be interesting to see how this momentum continues in the coming months.”
