The Purchasing Managers’ Index (PMI) report has shown that inflationary pressures softened in the Nigerian private sector during April, following record increases in purchase costs and selling prices in March.
According to the report, rates of inflation remained elevated, however, and limited growth of output and new orders as well as leading some firms to reduce employment. It said the headline figure derived from the survey is the Purchasing Managers’ Index (PMI).
Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration. “The headline PMI ticked up to 51.1 in April from 51.0 in March, pointing to a fifth consecutive monthly improvement in business conditions in the Nigerian private sector, but one that was only slight overall,” it said.
According to the report, conditions for firms continued to be heavily influenced by movements in the naira and the subsequent impact on prices. “An improvement in the strength of the currency over the past month led to sharp slowdowns in rates of increase in purchase prices and output charges, although inflationary pressures remained substantial, nonetheless. The latest rise in selling prices was the softest in just under a year.”
