Nigeria's Private Sector Growth Slows in June PMI Report

In June, Nigeria's private sector growth experienced a slowdown, as indicated by the Purchasing Managers' Index (PMI), which fell to 53.4 from May's 54.1, according to the S&P Global Stanbic IBTC report. A PMI above 50 indicates expansion, and the June figure reflects solid monthly improvement in business conditions at the end of the second quarter.

The report noted that improved demand conditions supported further increases in output and new orders, with firms hiring additional staff and raising purchasing activity. However, the rate of growth was softer compared to May, with business activity expanding across three of the four broad sectors surveyed, except for manufacturing.

Optimism regarding future output was notably strong, with companies planning to expand operations and stockpiling in response to improved customer demand. Input costs and output prices increased sharply, although to a lesser extent than immediately following the outbreak of conflict in the Middle East.