December 5, 2022

PMI rises to 54.3 in November amid inflationary pressure —Stanbic report

By Peter Egwuatu

The Purchasing Power Index, PM1, rose to 54.3 points in November 2022, from 53.6 points the previous month amidst rising inflationary pressure, according to Stanbic IBTC survey.

According to the survey, business conditions continued to improve markedly in the Nigerian private sector during November amid improving demand and higher customer numbers. 

“In turn, firms expanded their purchasing activity and employment. That said, business confidence dropped to the lowest since the survey began in January2014”, the report added.

Meanwhile, the survey also noted that inflationary pressures remained elevated, often reflecting currency weakness.

PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

The report stated: “New business increased at the fastest pace in six months amid reports of stronger demand and higher customer numbers. ‘‘Companies responded to rising demand by increasing their business activity accordingly. Output has now risen in each of the past five months.

‘‘Marked increases in activity were seen across each of the four broad sectors covered by the survey.

‘‘New order growth also encouraged companies to expand their employment and purchasing activity midway through the final quarter of the year.

‘‘Staffing levels increased for the twenty-second month running and at the fastest pace since August. Meanwhile, the rate of growth in purchasing activity was the steepest in four months. Similarly, inventories also expanded at a marked pace”.