The Stanbic IBTC Bank Nigeria PMI decreased to 56.8 in December 2019 from 57.7 in the prior month, but still pointing to a marked monthly improvement in the health of the Nigerian private sector. Output and new orders continued to advance solidly. Meantime, employment growth was the fastest in a year-and-a-half, and purchasing activity rose to the greatest extent since May 2018. In terms of prices, input prices continued to increase sharply, mainly attributed to the border closure and scarcity of certain products. Wages and salaries also rose and at the fastest pace in a year. As a result, output prices were also raised, extending the current sequence of inflation to four years. Looking ahead, business optimism improved to an 11-month high, with respondents planning to invest in and expand their business over the coming year to support output growth. Composite Pmi in Nigeria averaged 53.76 points from 2014 until 2019, reaching an all time high of 59.10 points in May of 2018 and a record low of 46.30 points in August of 2016. source: Markit Economics
Composite Pmi in Nigeria is expected to be 55.80 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Composite Pmi in Nigeria to stand at 55.00 in 12 months time. In the long-term, the Stanbic IBTC Bank Nigeria PMI is projected to trend around 54.60 points in 2020, according to our econometric models.