Protests slowed private sector’s growth in November – Report

The Nigerian private sector remained in growth territory overall in November, although recent protests led output to contract for the first time in five months, and the rate of expansion in new orders softened.

Stanbic IBTC Bank stated this in its Purchasing Managers’ Index report for November 2020.

It stated that companies continued to raise purchasing activity and employment in line with rising new order inflows.

It said higher staffing allowed firms to reduce the level of outstanding business for the sixth month running, while vendor performance improved in November.

Meanwhile, firms remained optimistic about output in the year ahead with plans to upgrade software and expand operations often cited by firms.

On the price front, inflationary pressures remained marked, the report said.

It said overall input costs increased amid higher raw material costs and currency weakness.

It stated that the firms often chose to pass on higher cost burdens with average output prices increasing substantially.

The report said, “The headline PMI registered at 50.9 in November, down from 53.5 in October, but signalling another expansion in the Nigerian private sector. That said, the latest increase pointed to a significantly softer rate of growth, and one that posted below the long-run average.

“Output fell for the first time in five months during November. Anecdotal evidence overwhelmingly linked the latest decline to recent civil unrest and country-wide protests. New orders continued to rise however with a solid expansion recorded in November.”