PMI slight decline 0.1 points to 53.6 points

According to the Stanbic IBTC PMI report, the Purchasing Managers Index, or PMI, which measures the intensity of activity in the real sector, fell 0.1 percent from 53.7 points in September to 53.6 points in October 2022.

Ratings above 50.0 in the survey’s headline figure indicate an improvement in business conditions compared to the previous month, while readings below 50.0 indicate a decline.

It was reported that: “The headline PMI posted at 53.6 in October, little-changed from 53.7 in September, indicating a solid improvement in the health of the private sector. A key driver of growth was a sharp rise in new orders following reports of favourable and improving market conditions.

‘‘In turn, firms raised their output levels for the fourth month in a row. Moreover, the rate of increase was quicker than the long-run series average. Manufacturing firms registered the strongest increase in output, followed by services, wholesale & retail, and finally agriculture.”

The report added: “Backlogs increased for the second month in a row during October, but the rate of increase from that in September. Firms subsequently continued hiring activity, but the rate of growth was mild, and the joint-weakest in the current 21-month sequence of job creation.

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The rate of Stanbic IBTC Bank Nigeria PMI Growth accelerated during the month as a result of sustained increases in new orders for Nigerian private sector enterprises. Pre-production stocks also increased significantly, and as businesses worked to increase their stockpiles, the rate of growth accelerated to a three-month high.

Source: vanguardngr.com