Nigeria’s business activity has dropped for the fifth month in a row in November, mainly because of ongoing inflation and weak consumer demand. The latest Purchasing Managers Index (PMI) from Stanbic IBTC Bank shows that the main index fell to 49.6 in November, down from 46.9 in October.
The report says that the drop is due to high inflation and low demand, which have slowed down business activity in the private sector. Even though overall activity decreased, the agriculture and manufacturing sectors saw small increases in production, while the wholesale, retail, and services sectors saw decreases.
High costs for materials and weak demand caused companies to buy fewer supplies and reduce their stock levels. This led to a decrease in job index, the first drop in seven months, mostly affecting the services sector.
