1 day Ago By Chinwe Michael
Business confidence in Africa’s most populous nation rose to the highest level in 14 months in March as businesses reported rising demand for their goods and services. Stanbic IBTC’s latest Purchasing Managers’ Index (PMI), released Tuesday, shows the headline index climbed to 54.3 in March, up from 53.
7 in February—its highest level since January 2024. A PMI above 50.0 signals an expansion in business activity, while a reading below that threshold indicates a contraction.
Read also: Here are five agribusiness ideas for investors in 2025 “March’s uptick reflects a solid improvement in business conditions for the fourth consecutive month, driven by a sharp increase in new orders – the fastest in 14 months,” the report noted. It added that the private sector’s performance was buoyed by stronger domestic demand, resulting in expanded output across all major sectors, including manufacturing, trade, and real estate. Rising new orders in a PMI signals increased demand and optimism in the economy, suggesting businesses are receiving more orders and anticipate future growth.
One of the most notable findings in the report was the decline in input cost inflation, which reached its lowest level since May 2023. According to the Nigerian Bureau of Statistics, the headline inflation rate eased to 23.18 percent in February, a decrease of 1.
30 percent compared to the 24.48 percent recorded in January. The report said that “All items less farm produce and energy’’ or core inflation, which excluded the prices of volatile agricultural produce and energy, stood at 23.
01 percent in February on a year-on-year basis. “This decreased by 2.12 percent compared to 25.
13 percent recorded in February 2024. Authors of the PMI report added that softer price pressures encourage firms to stockpile inputs, anticipating stable cost conditions in the coming months. “As inflationary pressures eased, the pace of price increases for goods and services slowed for the third consecutive month,” the report noted.
Read also: Women-led businesses get one in 10 financial service loans – Ladejo “Softening inflationary pressures are helping to improve domestic demand conditions, in turn supporting an overall improvement in private sector activity. Consequently, private sector activity strengthened for the fourth consecutive month,” it added. Additionally, employment levels saw a modest rise, marking the most substantial increase in seven months.
While some firms resorted to contract-based hiring, the overall job market sentiment remained positive..
