Inflationary pressures remain high, industry indices show

The Nigerian private sector registered a slight loss of growth momentum in January as the headline Purchasing Managers Index dipped to 53.5 points from 54.6 points in December 2022. This is according to the PMI report which gauges the level of activities in the real sector. A reading below 50 is a marker of contraction […]

The Nigerian private sector registered a slight loss of growth momentum in January as the headline Purchasing Managers Index dipped to 53.5 points from 54.6 points in December 2022.

This is according to the PMI report which gauges the level of activities in the real sector. A reading below 50 is a marker of contraction but any reading above that threshold suggests growth.

The report noted that the rate of overall input cost inflation continued to moderate in January, easing for the second month running to the softest for a year.

It, however, added that January data pointed to a further marked increase in purchase prices in the private sector, despite the rate of inflation easing to a three-month low.

“Higher costs for fuel and raw materials were widely reported, with a number of respondents indicating that currency weakness had exacerbated inflationary pressures,” it said.

The report noted that business activity increased at a much slower pace at the start of the year, despite the rate of growth remaining marked, adding that the latest rise was the weakest in five months.

While demand continued to improve, it noted that some firms reported a moderation in customer numbers.

The report indicated that Nigerian companies increased their staffing levels at a solid pace in January, with the rate of job creation accelerating sharply to the most marked since June 2018 as part of efforts to complete work on time.

The PMI is a monthly survey by Stanbic IBTC Bank compiled by London-based market intelligence powerhouse S&P Global Platts and endorsed by the National Bureau of Statistics.