Business and economic activities in Nigeria fell to their lowest in June 2024, driven by soaring prices of goods and services.
According to the Purchasing Managers’ Index (PMI) released on Monday, which surveyed 400 companies from the agriculture, manufacturing, services, construction, and retail sectors, the headline index dropped to 50.1 from 52.1 in the previous month.
The report, conducted by Stanbic IBTC, indicated that the PMI for June showed a broad stagnation in Nigeria’s private sector due to price pressures, which led to a decline in output and new orders.
“June data signaled a broad stagnation of the Nigerian private sector as subdued demand and intense price pressures led to slowdowns in growth of output and new orders. In turn, employment rose only fractionally. Although new orders continued to rise in June, the rate of expansion was only marginal and the weakest in the current seven-month period of growth. There were some reports of underlying demand improving, but sharp price rises meant that customers faced challenges being able to commit to new projects,” the report stated.
Muyiwa Oni, head of equity research for West Africa at Stanbic IBTC Bank, commented on the report, saying, “The Stanbic IBTC headline PMI dropped to a seven-month low of 50.1 points in June from 52.1 in May due to moderation in domestic demand amid the intensification of price pressures, leading to slowdowns in growth of output and new orders.”
This development comes as headline and food inflation surged to 33.95 percent and 40.66 percent, respectively.
