Business Activity Improves in the Manufacturing Sector in September Despite COVID-19

Businesses in Nigeria experienced positive growth in the month of September despite the negative impacts of COVID-19.

In a recent report titled “Business conditions continue to improve, albeit at a weaker pace” and published on Tuesday by Stanbic IBTC Bank, businesses in the private sector remained in growth territory in September despite the weaker pace of growth.

The report read in part, “The Nigerian private sector remained in growth territory in September, although there were some signs of moderation as rates of expansion in output and new orders softened.

“Companies continued to expand purchasing activity and employment in line with higher new orders. Suppliers’ delivery times improved further amid a lack of road congestion.

“Meanwhile, increased workforce numbers and sufficient capacity to fulfill new orders led to a series – record decline in the level of incomplete work.”

It, however, stated that September’s business sentiment was the weakest since the commencement of the survey in January 2014 as several businesses expressed difficulty in planning for the year ahead.

On price, the firms surveyed said input price inflation increased raw material costs due to the unfavourable exchange rates.

The report stated that the Manufacturing Purchasing Managers’ Index stood at 52.5 in September, above the 50 mark that separates expansion from the contract. However, the reported that business activities declined in September when compared with August when PMI was 54.6.