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The fall in output and new order suggests that inflationary pressure remains elevated. The headline inflation spiked in October, setting a new multi-decade high of 27.3%. Ahead of the November consumer price index (CPI) readings. Some experts have projected the inflation rate to hit 30 per cent by December
The prolonged continuing fall of macroeconomic indicators of the Nigerian economy may be taking a toll on business performances as output and new orders recorded a second successive monthly decline in November. This is revealed in the latest edition of the Stanbic IBTC Bank Purchasing Managers’ Index.
According to the survey compiled by S&P Global and endorsed by the National Bureau of Statistics (NBS), the fall in output and new order suggests that inflationary pressure remains elevated. The headline inflation spiked in October, setting a new multi-decade high of 27.3%. Ahead of the November consumer price index (CPI) readings. Some experts have projected the inflation rate to hit 30 per cent by December.
The decline in new orders suggested that consumers are either reluctant or unable to pay new charges. Low purchases could trigger low production, which may lead to redundancy of especially factors, including labour, in the short to medium term.
According to the result analysis, business activity fell strongly particularly at wholesale and retail companies. Agriculture was the only sector that posted an increase in output. Despite the poor business environment, the report noticed that wages increased as companies struggled to help employees cope with higher living and transportation costs. Firms, it noted also, continued to expand their staffing levels with employment increasing modestly for the seventh month running. Reduced demand for inputs, prompt payments and competition among suppliers meant that vendor lead times continued to shorten. Moreover, the rate of improvement hit a one-and-a-half-year high.
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The report is compiled by S&P from purchasing managers in a panel of about 400 private sector companies.
