Banking Briefs
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THE Stanbic IBTC Bank Nigeria Purchasing Managers’ Index has said that the downturn of Nigeria’s private sector showed signs of easing in July as both output and new business fell at slower rates, having dropped to the greatest extent in the June.
Ayomide Mejabi, economist at Stanbic IBTC Bank, said, “The Stanbic IBTC Bank Nigeria PMI for July signalled a slower downturn in Nigeria’s business operating conditions by reaching 48.8 from a survey low of 47.3 in June. While the overall survey result suggests some improvement, it remains below 50 and implies that macroeconomic conditions are weak.
“Perhaps an explanation for the improved sentiment in consumer and business activity can be traced to the recent reforms implemented by authorities especially in the foreign exchange market. Indeed, after a likely contraction in growth during the first half of the year, it is expected that recent reforms in the foreign exchange market aimed at attracting net capital inflows will finally be able to boost domestic investment and consequently growth.
“Although output and input prices rose at weakened rates in July, the rates of increase still remain elevated and suggest that headline inflation may continue to rise for a few more months.” According to the survey, lower output was a key factor behind the private sector downturn.
— Aug 15, 2016 @ 01:00 GMT
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