Private Sector output in Nigeria expanded slightly in September 2023, says Stanbic IBTC Bank PMI

After reaching 50.2 in August 2023, the Stanbic IBTC Bank Nigeria Purchasing Manager’s Index (PMI) for September 2023 increased by 0.9 units to 51.1. The PMI gauges the size of the nation’s private sector’s production. A score greater than 50 denotes an increase in economic activity (output), whereas a value less than 50 denotes a decrease.

A number of 50 indicates that economic activity has not changed. In September, the PMI was 51.1, which indicates a minor improvement over the three-month trend of declining business conditions for private sector enterprises.

According to the report, new orders, which grew for the sixth consecutive month as businesses witnessed an improvement in demand, were the primary factor in the increase in output by the private sector. Even so, the rate of growth was only moderate because weak demand and consumption declines as a result of price increases.

Out of the four sectors being watched—services, manufacturing, agriculture, and wholesale/retail—only manufacturing saw its production fall. It is important to identify the problems affecting the manufacturing sector and put policies in place to help it expand. Inflationary pressure must also be addressed by policymakers because it has a detrimental impact on consumer demand and new orders.

The minor uptick in economic activity in September indicates that major improvements in the business climate and living standards for Nigerians will result in even more economic activity in the private sector during the last quarter of 2023. As a result, the government must work more to increase individuals’ purchasing power and remove obstacles to commerce.