According to its Purchasing Managers Index for the month, Stanbic IBTC Bank has said that the Nigerian private sector’s growth quickened in April.
The PMI grew to 55.8 in April, up from 54.1 in March. The report stated that the headline PMI signaled a sharp improvement in business conditions in Nigeria’s private sector.
According to the report, readings above 50.0 signaled an improvement in business conditions in the previous month, while readings below 50.0 showed a deterioration.
Growth has now been seen in each of the last 22 months with the latest uptick quicker than the long-run series average, it added.
It stated that “Marked and accelerated expansions in output and new orders helped drive a pick-up in growth in the Nigerian private sector during April.”
However, it added, private sector performance was once again impacted by elevated rates of inflation, uncertainty and unfavourable exchange rate movements.
The report said, “Overall rate of expansion was marked and the third-quickest in the current 22-month sequence of growth. Panelists indicated that stronger demand and greater client requirements had been behind the latest increase in new business, with growth signaled across each of the four broad sectors covered by the survey.
“Strong inflows of new work resulted in a further uplift in output. The rate of growth was robust and quickened from that in March. Sub-sector data revealed expansions across the board, though agriculture recorded the quickest expansion.
“Wholesale & retail, manufacturing and services followed, respectively.”
“With workloads increasing, and demand expanding over the last 22 months, firms sought to boost head counts in a bid to ramp up activity. Subsequently, backlogs fell at the quickest pace for four months.”