Stanbic IBTC Plc’s Purchase Managers Index (PMI) report showed that the Nigerian economy’s performance in January 2023 resulted in the highest input costs for operators in the manufacturing and agriculture sectors.
The PMI report said the rise in input costs was due to rising fuel and commodity prices, exacerbated by the naira’s depreciation in the FX market.
Additionally, companies surveyed by the PMI report that they are “hindered by mechanical and power issues.”
said:
“As input costs continued to rise sharply, companies again raised their selling prices in response. As a result, January saw another rapid rise in commissions, well above the series average. Producer prices rose fastest in agriculture and manufacturing.”
According to the report, “combined input cost inflation continued to decline in his January, marking the second straight month of decline and the lowest in a year,” but input prices still continued to rise sharply, Higher than at any point prior to May 2021. Industry data showed that cost pressures were most pronounced among manufacturers. ”
The PMI report continued, “January data showed Nigeria’s It showed that the private sector purchase price of
The report also showed the headline PMI fell to 53.5 in January 2023 from 54.6 in December 2022, despite employment rising at its fastest pace in a month since June 2018. .
said:
“The Nigerian private sector lost some growth momentum in January. Production and new business continued to grow strongly, but at a slower pace than at the end of 2022. On the more positive note, , companies have been hiring more workers as soon as possible since June 2018 in an effort to complete work on time. On the price front, input cost and output price inflation eased in January but remain elevated.”
A key figure derived from the January 2023 survey is the Purchasing Managers Index (PMI). A value above 50.0 indicates an improvement in business conditions from the previous month, a value below 50.0 indicates a deterioration.
“Comprehensive PMI fell to 53.5 in January from 54.6 in December, suggesting solid monthly strengthening of the private sector and continuation of his 31st consecutive month, while the rate of improvement is expected to continue in 2022.” It was the lowest since August.”
However, although the pace of growth is still evident, the pace of increase in business activity at the beginning of the year has slowed considerably, according to the PMI report.
“The recent surge was his weakest in five months. Demand continued to improve, but some businesses reported lower customer numbers. The surveyed subject saw increased activity in each of four major sectors.
“The pace of new business expansion also slowed in January, but remained strong, reflecting higher customer demand. Employment grew at its fastest pace since June 2018. “Order backlogs increased for the first time in three months despite hiring more people. Firms report being hampered by mechanical and electrical problems,” the report said.