Business activity in Nigeria fell for the second time in a row as prices rose at the sharpest rates in six months due to inflationary pressure.
The latest monthly Purchasing Managers Index (PMI) by Stanbic IBTC Bank released on Wednesday showed the headline index declined to 49.8 in September from 49.9 in August. Readings above 50.0 signal an improvement in business conditions, while those below show deterioration.
“Business confidence fell in September and was the second lowest on record, only just above the series nadir posted in July,” it said.
Read also: Nigeria’s business activity drops to 8-months low on cost pressures
This is as inflationary pressures intensified in September, adding to the challenges faced by Nigerian companies as the third quarter drew to a close.
“In fact, September saw an intensification of inflationary pressures, with both input costs and output prices increasing at the sharpest rates in six months.”
“Purchase prices rose rapidly amid currency weakness and higher costs for fuel, logistics, materials and transportation. Some firms made efforts to help their workers with higher living costs, but the rate of wage inflation eased to an 18-month low,” the report said.
As a result of this, the report disclosed that companies continued to report challenging demand conditions, in large part due to the inflation environment.
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