Nigeria Purchasing Manager’s Index second highest reading for the year occurred in May as it rose from 51.2 point in April to 52.1 point in May.
The highest reading happened in January when PMI stood at 54.5 points. Increase in PMI leads to improvement in business environment for private sector.
According to data gathered from the responses of about 400 purchasing managers in private sector companies, indicated a pick-up in growth in the sector.
“The monthly Stanbic IBTC Bank Nigeria PMI, which was released on Tuesday, inflationary pressures eased, but remained marked, leading to sharper rises in output and new orders”.
However the rates of expansion remained slower than the respective series averages as a result of high prices limiting demand.
Speaking on the report, the Head of Equity Research West Africa at Stanbic IBTC Bank, Muyiwa Oni, said, “The Stanbic IBTC headline PMI increased to 52.1 points in May from 51.1 in April—its highest level since reaching 54.5 points in January.
“This implies that Nigeria’s private sector activity maintained a better footing in May even as the rate of expansion remained slower than the series average as high prices continued to limit demand.”
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