Stanbic IBTC Bank Reports Strong Growth in Nigeria's Private Sector

In September, Nigeria's private sector recorded its strongest output growth in more than four years, as indicated by the Purchasing Managers' Index (PMI) report compiled by S&P Global for Stanbic IBTC Bank (NGX: STANBIC). The PMI rose to 56.4 points from 54.3 points in August, marking the highest level since February 2022.

This improvement was attributed to a surge in new orders, enhanced customer demand, and increased business activity. New business expanded for the eighth consecutive month, achieving its fastest growth since February 2022.

All four sectors monitored reported growth, leading to significant increases in purchasing activities and inventory accumulation, the highest since the end of 2021. Employment rose modestly, with some companies hiring temporary workers to manage workloads.

However, the growth occurred amid rising inflationary pressures, with input costs increasing sharply due to higher fuel and raw material prices. Businesses passed some of these costs onto customers, resulting in accelerated output price inflation.

Muyiwa Oni, Head of Equity Research at Stanbic IBTC Bank, noted the significant improvement in business conditions.