Operating conditions within Nigeria’s private sector improved in July. Nigeria’s headline PMI reading came in at 53.2 in July compared to 50.9 in June.
The improvement was due to the strong output levels, which have been driven by improved demand. However, it wasn’t all rosy. Due to persistently high input costs, businesses were forced to pass on a large part of the burden by raising their selling prices at the fastest rate in four months. Input costs have been soaring amid elevated international commodity prices and ongoing supply chain issues. While risks to the outlook have intensified as global growth concerns remain elevated, firms remain optimistic about output growth in the year ahead amid hopes of acquiring greater investment and expanding business operations.