Nigeria’s manufacturing Purchasing Managers’ Index (PMI) rose to 58.9 in April from 52.8 posted in March, according to a survey by FBNQuest Research of the FHB Hodings.
The PMI for Nigeria, which takes the temperature of the sector is a summary of core variables (output, employment, new orders, delivery times from suppliers and stocks of purchases) in the business of selected companies every month.
According to FBNQuest, “The surge in the headline reading from 52.8 posted in March is the third consecutive increase this year and has placed the index well above water to its highest level since December 2016. We see an improvement in business confidence, which we have to attribute to the increased fx liquidity resulting from the CBN’s many interventions over the past two months. If manufacturers have greater access to imported inputs, it is no surprise that they report higher output, new orders and stocks of purchases.
“The reading of 55 for employment was the highest for 18 months and appears to reflect recruitment of seasonal labour. If repeated, we may have to conclude that respondents have confidence in the fx interventions beyond the short term. Another factor to explain the surge in April could also be a boost to consumption for the Easter holidays.”