Nigeria Composite PMI

Last Release

Jul 31, 2024

Actual

49.2

Units In

Points

50.1

Frequency

Monthly

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
59.1 May 2018	37.1 Apr 2020	52.93 Points	2014-2024	Markit Economics

The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index measures the performance of the private sector and is derived from a survey of 400 companies from agriculture, manufacturing, services, construction and retail. The Purchasing Managers’ Index is a composite index based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the private sector activity compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

Latest Updates

The Stanbic IBTC Bank Nigeria PMI fell to 46.9 in October 2024, down from 49.8 in the prior month. The latest reading pointed to the fourth consecutive month of contraction in the country's private sector, marking the most significant decline since March 2023. Both new orders and output declined markedly, primarily due to the intensification of already strong inflationary pressures, driven by currency weakness and rising costs for fuel and transportation. In fact, overall input costs increased at one of the sharpest rates on record, prompting a corresponding rise in selling prices. Purchasing activity was also reduced to its lowest level since March 2023. Consequently, input stocks declined for the third consecutive month. More positively, companies continued to increase their staffing levels, raising employment for the sixth month running, albeit modestly. Finally, business sentiment was the lowest since the survey began in January 2014.