Inflation Continues To Hinder Business Growth In November

The continued rise in inflation has disrupted business operations in Nigeria, with the Purchasing Managers’ Index (PMI) remaining below the 50.0-point mark. PMI is an indicator used to assess business conditions, where readings above 50.0 indicate an improvement, and those below signify a decline. According to….READ MORE…

Stanbic IBTC’s PMI report released yesterday, despite some signs of improvement in the final quarter of the year, inflation and unemployment have dampened business activity in November.

The report revealed: “Employment decreased, and companies continued to reduce purchasing amid rising prices. The PMI remained below the 50.0 threshold for the fifth consecutive month, indicating ongoing deterioration in business conditions.”

At 49.6, the PMI in November showed a slight recovery from October’s 46.9, marking a minor decline. This marginal decrease was partially due to a slight increase in new orders following a significant drop in October. Despite some improvements in demand, high prices continued to deter customers.

The inflationary environment and subdued demand led to continued declines in business activity, marking the fifth consecutive month of contraction. However, this reduction was less pronounced. Sector-specific data revealed growth in agriculture and manufacturing output but declines in wholesale, retail, and services.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, commented: “Private sector activity deteriorated further in November, though at a slower rate than in October. This less severe decline was mainly due to the return of growth in new orders. New orders have now increased in three of the past four months, although the latest growth was modest. Some participants observed improved demand, but others reported that high costs were deterring customers. Additionally, higher energy prices, rising raw material costs, and a weak currency contributed to intensified inflationary pressures.”

The report highlights that businesses are facing continued challenges as inflation remains a key barrier to growth.

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on WhatsApp.