At the end of the second quarter, Nigeria’s private sector conditions improved at the weakest pace in 17 months. Purchasing managers’ index (PMI) Stanbic IBTC Bank in Nigeria fell to 50.9 in June from 53.9 in May. At the same time, the index remained above the neutral threshold of 50 points, which separates the overall improvement from the deterioration in operating conditions.
The overall drop came amid the first drop in production in 19 months and the weakest increase in new orders in more than two years. Production was hampered by cash shortages in addition to more subdued demand, while demand was affected by higher prices. On the price side, input price inflation accelerated to the fourth-highest level on record, on the back of higher fuel and raw material prices and an increase in the wage bill as employment increased for the 17th straight month in an attempt to boost output.
FocusEconomics Consensus Forecast experts expect fixed investment to increase by 4.3% in 2022 and by 8.0% in 2023.