Nigeria's Private Sector Growth Continues in July 2023

In July, Nigeria's private sector maintained its growth for the sixth consecutive month, as indicated by the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI), which recorded a headline figure of 52.5, a decrease from 53.4 in June. This figure remains above the 50-point threshold, signaling ongoing expansion but reflects the slowest pace of improvement in three months.

The growth was attributed to stronger customer demand, competitive pricing, and new product launches, which facilitated additional orders. New business increased significantly for the sixth month, contributing to business activity growth.

However, output growth slowed, particularly in agriculture and manufacturing, while services and wholesale and retail saw modest gains. Employment rose as firms hired more staff to meet production needs, although hiring slowed to a three-month low.

Businesses increased purchasing activity and inventories to align with demand, despite facing logistical challenges that delayed project completions. Input costs and selling prices rose but at a slower rate, with input cost inflation easing to its lowest in five months.