December 2024 recorded the highest business activities in Nigeria for the second half of the year, thanks to the Christmas season and its festivities.
This is seen in the Stanbic IBTC Bank Nigeria Purchasing Manager Index (PMI) released on Thursday.
The Headline Purchasing Manager Index (PMI), which had stayed below 50.0 points throughout the second half of 2024, moved to 52.7 points in December 2024, up from the 49.6 points seen in November 2024.
A PMI reading above 50.0 points indicates improvement in the sector compared to the previous month, while readings below 50.0 points indicate regression.
Thus, December showed the most impressive growth in the private sector since January 2024.
The PUNCH reports that new orders, outputs, purchases, and employment also increased to meet the demand.
This report, conducted by S&P Global, surveys purchasing managers from 400 private companies. It covered sectors in Nigeria such as manufacturing, mining, construction, retail, wholesale, services and agriculture and was conducted by S&P Global.
Mr. Muyiwa Oni, Stanbic IBTC Bank Head of Equity Research West Africa, said;
An increase in new orders led to increased employment and purchases and an expansion of business activities during the month.
Mr Oni also noted that the increased output was linked to an increase in customers, with the highest growth recorded against four broad sectors.
Input and output prices went higher in December 2024 across the sectors, although much of the growth is attributed to economic activities arising from the Yuletide, as well as increased crude oil production.
He said;
Notwithstanding the highs recorded in the report, business confidence was the third lowest since the survey started in 2014. The continued naira depreciation and higher fuel and transportation costs still pushed purchase prices higher.
Source: TimesNow.com.ng
