Nigerian private sector expanded by 2.9 percent in April, 2021 underpinned by further growth in output and new orders, according to Purchasing Manufacturing Index, PMI released by Stanbic IBTC Bank Plc.
The PMI shows that firms increased their workforce and inventory holdings in anticipation of greater demand, while vendor performance improved further.
According to the PMI survey, “inflationary pressures continued to build, however, with material shortages contributing to the sharpest overall rate of inflation in the series to date. Firms responded by raising selling prices to protect their profit margins.”
The PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration.
According to Stanbic IBTC, “ At 52.9 in April, the headline PMI registered a rate of growth that was unchanged from that in March and extended the period of expansion to ten consecutive months.
“Higher domestic demand led to a rise in new orders, with the rate of growth substantial in April. This supported another expansion in output, albeit one that was softer than that in March. Sector data revealed that agriculture posted the fastest rise in output followed by services and manufacturing respectively. Wholesale & retail meanwhile recorded a decline.
“To support the sustained growth in output, firms increased their purchasing activity, with the rate of growth the quickest in 14 months.”