PMI drops marginally by 0.1 points to 53.6 points

The Purchasing Managers Index (PMI), which gauges the level of activities in the real sector, has dropped marginally by 0.1 percent to 53.6 points in October 2022 from 53.7 in September, the Stanbic IBTC PMI report has stated.

In the headline figure derived from the survey readings above 50.0 signal positive direction in business conditions against the previous month, while readings below 50.0 show a deterioration.

The reported stated: “The headline PMI posted at 53.6 in October, little-changed from 53.7 in September, indicating a solid improvement in the health of the private sector. A key driver of growth was a sharp rise in new orders following reports of favourable and improving market conditions.

"In turn, firms raised their output levels and for the fourth month in a row. Moreover, the rate of increase was quicker than the long-run series average. Manufacturing firms registered the strongest increase in output, followed by services, wholesale & retail and finally agriculture.”

The report added: “Backlogs increased for the second month in a row during October, but the rate of increase from that in September. Firms subsequently continued hiring activity, but the rate of growth was mild, and the joint-weakest in the current 21-month sequence of job creation.

Sustained expansions in new orders led Nigerian private sector firms to raise their purchasing activity ,with the rate of Stanbic IBTC Bank Nigeria PMI Growth quickening on the month. Pre-production inventories also rose robustly, with the rate of growth quickening to a three-month high amid firms ‘efforts to boost their stockpiles.”