Nigeria's Private Sector Growth Continues in July 2023

In July, Nigeria's private sector continued its growth trajectory, as indicated by the Purchasing Managers’ Index (PMI) released by Stanbic IBTC Bank Nigeria and compiled by S&P Global, which recorded a decline to 52.5 from 53.4 in June. This figure, while representing the slowest improvement in business conditions in three months, remains above the 50-point threshold that signifies expansion, marking the sixth consecutive month of growth in private sector activity.

The survey revealed robust growth in new orders driven by stronger customer demand and competitive pricing strategies. Although production growth eased to its weakest pace since January, agriculture and manufacturing sectors led output gains.

Firms increased their workforce to meet production demands, although employment growth slowed. Purchase costs saw a notable slowdown, reaching their lowest inflation rate in five months, while wage inflation moderated.

Business sentiment remained optimistic, with nearly half of the surveyed firms expecting increased output.