Business conditions continued to improve markedly in the Nigerian private sector in November amid improving demand and higher customer numbers, Purchasing Managers’ Index for the month has shown.
The report said firms expanded their purchasing activity and employment even as business confidence dropped to the lowest since the survey began in January 2014.
According to the report, inflationary pressures remained elevated, often reflecting currency weakness.
It said purchase costs rose at a sharper pace as weakness of the naira against the dollar exacerbated rising raw material prices. Staff costs were also up, linked both to higher staffing levels and efforts to motivate workers by increasing wages.
The PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
The headline PMI rose to 54.3 in November from 53.6 in October, pointing to a solid monthly improvement in business conditions in the Nigerian private sector. The health of the private sector has now strengthened in 29 successive months, with the latest improvement the most pronounced since April.
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 22 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.