Nigerian private sector was said to have improved by 2.9 percent in April, 2021 according to a Purchasing Manufacturing Index, PMI report released by Stanbic IBTC Bank Plc.
According to the report, released on Thursday, April figure showed a PMI of 52.9.
It stated that the PMI reading which was above 50.0 signaled an improvement in business conditions on the previous month, while readings below 50.0 showed deterioration.
“At 52.9 in April, the headline PMI registered a rate of growth that was unchanged from that in March and extended the period of expansion to ten consecutive months,” the report stated.
Findings, as indicated by report showed that output and new orders rose solidly, backlogs depleted at second-fastest rate on record, and overall input price inflation quickened to series high.
It also showed that higher domestic demand led to a rise in new orders, with the rate of growth substantial in April.
This supported another expansion in output, albeit one that was softer than that in March, it stated.
The report said, “April data revealed another solid overall expansion in the Nigerian private sector, underpinned by further growth in output and new orders.
“Firms added to their workforces and inventory holdings in anticipation of greater demand, while vendor performance improved further.
“A rise in headcounts allowed firms to clear their backlogs, with the rate of depletion the second-sharpest in the seven-year history of the survey.
“Inflationary pressures continued to build however, with material shortages contributing to the sharpest overall rate of inflation in the series to date. Firms responded by raising selling prices to protect their profit margins.”
According to the PMI, sector data revealed that agriculture posted the fastest rise in output followed by services and manufacturing respectively.