Nigeria experienced increase in export of manufactured goods… in July: Report

The Stanbic IBTC Bank Nigeria’s Purchasing Manager Index (PMI) report has stated that the export of Nigerian manufactured goods, employment and productivity in the economy grew in the month of July 2021.

The report added that the rate of inflation eased to a seven-month low during the period under review.

It said that the headline PMI rose in July to 55.4, up from 53.6 in June.
The reading signaled a marked improvement in business conditions, and one, which was the strongest since January 2020.

The PMI headline readings above 50.0 from the headline figure would signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration.

The PMI report indicated that foreign demand for made in Nigeria goods and services went up for the third successive months this year in July.

The report attributed the rise to improvements in global economic demand conditions that led to higher exports. It said that the rate of expansion strengthened for the second month running and improved to a new series high in July.

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The PMI report also showed that output rose at a sharp and accelerated pace at Nigerian private sector firms in July.

According to the report, “The rate of growth was the joint-quickest since August 2020, as greater customer demand and new client wins drove the latest upticks.”

The report added: “Nigeria’s private sector began the second half of the year on a positive footing as they continued the run of expansion that began in July 2020.

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Quicker upticks in output, new orders, purchases and employment supported growth.

Despite this, firms were able to keep backlogs at bay, though sentiment did moderate to the weakest since last September.

“On the price front, higher raw material, wage and transportation prices were linked to another robust rate of overall input price inflation. Output prices also rose sharply. Moreover new orders received by Nigerian private sector firms rose for the 13th successive month in July.”

The report said that the rate of growth quickened fractionally from that in the previous survey period and was the sharpest since January 2020 and attributed higher sales to improved demand conditions.

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The Stanbic IBTC report stated that employment index rose in July as its data pointed to a sixth successive monthly expansion in staffing levels at Nigerian private sector firms.

The rate of growth, it added, quickened from June’s three-month low and posted above the long-run series average.

It revealed that a surge in demand encouraged hiring activity at the start of the third quarter

“Overall input prices incurred by private sector firms in Nigeria rose in July, as has been the case throughout the series. Underlying data revealed that rising purchase prices, particularly for raw materials and higher staff costs, drove the increase.

That said, the rate of inflation eased to a seven-month low, “it stated.


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