Nigeria’s business activity expands for fourth month as household pessimism deepens
Nigeria’s composite business activity expanded for a fourth consecutive month in September, according to the Central Bank of Nigeria, but household confidence weakened sharply. The bank reported stronger industrial activity alongside renewed input-price pressure, high perceived prices and subdued intentions to make major purchases such as homes, vehicles and durable goods.
Nigeria’s business activity expanded for a fourth consecutive month in September, while households became more pessimistic about economic conditions, finances and prices, according to reports from the Central Bank of Nigeria. The CBN’s Composite Purchasing Managers’ Index rose to 53.0 points from 52.7 in August. The survey, conducted from September 7 to 11 among 1,900 purchasing and supply executives, found that 23 of 32 subsectors expanded and nine declined.
Industrial activity provided much of the improvement. The Industry PMI rose to 52.0 from 50.6, while the sector’s Output Index reached 53.2, supported by increases in new orders and employment. The Raw Materials Inventory Index also returned to expansion, rising to 51.1 from 49.4.
Services remained in expansion at 53.2, compared with 53.3 in August. Agriculture eased slightly to 53.1 from 53.4 but recorded its 26th consecutive month of expansion. The CBN said the figures indicated a broadening recovery, although input-price pressures required monitoring.
The composite input-price index rose by 0.8 points, while the output-price index declined by 0.5 points. Household sentiment moved in the opposite direction. The Overall Consumer Sentiments Index fell to -18.7 from -9.9.
The Economic Conditions Index stood at -21.5, while the Family Financial Situation Index was -23.9 and the Family Income Sentiments Index was -10.5. Households also reported stronger concerns about prices, with the average price sentiment index rising to 33.5 from 23.0. Food remained their leading spending priority, followed by transport, household goods, education and utilities.
Intentions to buy homes, vehicles, investments and consumer durables were all negative, indicating continued caution about major spending.
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