The business environment for the private sector in Nigeria improved slightly in May as the Purchasing Managers’ Index rose to 52.1 points in May from 51.1 points in the previous month.
This is the second-highest reading for the year, with the highest being in January, when the PMI stood at 54.5 points.
According to 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.
May data gathered from the responses of about 400 purchasing managers in private sector companies, indicated a pick-up in growth in the sector.
The rates of expansion, however, 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.”
