Sustained rise in inflation rate has stagnated business operations in Nigeria with the Purchasing Managers’ Index, PMI, still below the 50.0 points readings.
PMI tracks the operating environment of businesses, which leads to improvement or otherwise in business performance. PMI readings above 50.0 signal an improvement in business conditions in the previous month, while readings below 50.0 show a deterioration.
According to Stanbic IBTC’s PMI report released yesterday, though there were some signs of improvement midway through the final quarter of the year, factors bordering on rising prices of goods and unemployment have combined to suppress the PMI in November.
The report stated: “Employment was down, and companies continued to lower their purchasing amid steep price pressures.
“The headline PMI posted below the 50.0 no-change mark for the fifth consecutive month in November to signal further deterioration in business conditions in the private sector.
“That said, at 49.6 the latest reading was up from 46.9 in October and pointed to only a marginal decline. The less pronounced deterioration in business conditions in part reflected a renewed expansion in new orders, which rose slightly following a solid fall in October.”
