Nigerian businesses in October reported worsening conditions in October as cost pressures triggered by rapid inflation resulted in the sharpest downturn in business activities in the month.
This is according to the Stanbic IBTC Purchasing Managers’ Index (PMI) for October, which also revealed that business activities declined at the sharpest rate in 19 months to 46.9 from 49.8 in September.
It is the sharpest deterioration in business conditions since March 2023.
According to the report, overall input costs rose at one of the sharpest rates on record, prompting a corresponding increase in selling prices.
This led to significant declines in new orders and business activity, with business sentiment reaching its lowest point in the survey’s history.
A sharp rise in purchasing costs, driven by currency weakness and higher fuel and transportation prices, led Nigerian companies to increase their selling prices rapidly. To support workers facing higher living costs, staff pay saw its…