Purchasing Managers’ Index (PMI) for January 2024 rose to 54.5%

The Purchasing Managers’ Index (PMI) for January 2024, as reported by Stanbic IBTC, shows a significant improvement in business conditions compared to the previous month. The PMI increased from 52.7 in December 2023 to 54.5 in January 2024.

This positive trend indicates a recovery in new orders, which gained momentum during January. The number of new businesses also saw an increase, reflecting a growing confidence in the market. Additionally, business activity improved, leading companies to expand their purchasing activities and plan for further output improvements in the upcoming months.

However, employment growth remained slow during this period of recovery, with reports suggesting that firms faced challenges in paying their employees. To strengthen the PMI, the Nigerian government should focus on creating a business-friendly environment by reducing bureaucratic obstacles and offering specific financial incentives. Collaborating with financial institutions to provide additional funds in the form of guarantees and tax credits could be a viable approach.

Furthermore, prioritizing infrastructure development and maintenance would enhance logistics and ensure the timely delivery of goods and services. While businesses continue to thrive despite rising inflation and a weakened currency, it is crucial for the government to address these issues to sustain growth and prevent job losses.