Private businesses for Nigeria still report say business conditions improve for October, but higher fuel cost and small increase for employment make the picture no straightforward. Stanbic IBTC Bank Purchasing Managers’ Index wey reports carry on 2 November drop to 55.7 points from 56.4 for September. Still, e remain above 50 points, the line wey separate improvement from decline. Na nine months straight the survey don show improvement.
The number show how business conditions change compared with the month before. E no mean say Nigeria economy grow by 55.7 per cent. Companies report more new orders, as customers demand more and new products enter market. Business activity rise for all four sectors wey the survey cover, but orders and production no grow as fast as dem grow for September.
Fuel still dey put pressure on businesses. The bank release wey Business Journal publish say the cost of things companies buy and the prices dem charge customers rise at their fastest speed for four months. Businesses also report higher prices for building materials and food products. Staff cost rise too, but slower than September. This survey result different from national consumer-price inflation rate.
For employment, the picture mix. Agriculture and manufacturing employ more workers, while wholesale and retail trade plus services report fewer workers. Overall growth for employment slow to the lowest for three months. Some companies say the workers wey dem already get fit handle the work. This help explain why more business no bring equally strong hiring. Different sectors no experience the same thing.
Companies buy more things to handle orders and prepare for future projects, and the inputs wey dem keep for store increase too. Work wey never finish reduce for the third month straight. Suppliers deliver faster for the fourth month; prompt payment and less traffic disruption dey among the reasons dem give. These improvements happen even as the things businesses need cost more.
Wetin this mean for you. More orders fit come with higher selling prices and only small number of new jobs. For families, the report help explain why good business headline no mean say expenses go ease immediately. For small businesses, e separate customer demand from cost. E no set price for any particular shop, and e no promise say any employer go employ people.