Manufacturing Purchasing Managers’ Index Rises to 59.4

The manufacturing Purchasing Managers’ Index (PMI) for Nigeria, as compiled by FBNQuest rose to 59.4 in March from 54.7 in the previous month.

The reading which takes the temperature of the manufacturing sector considered five variables- output, employment, new orders, delivery times from suppliers and stocks of purchases.

According to FBNQuest, the improvement reflected some recorded changes for the better in the business environment along with the more positive macroeconomic outlook.

“Additionally, the run-up to the Easter festivities appeared a boost for some respondents. The reading for new orders surged, which would normally point to a strong manufacturing sector,” the report said.

“Since the CBN’s exchange-rate reforms, manufacturers have enjoyed better access to fx, and therefore to imported inputs.

“The economy emerged from recession in Q2 2017 but consumer budgets remain squeezed.

“Some manufacturers have adopted innovative methods to push prices down and still maintain healthy profit margins.”

Source: Worldstage