Looking ahead, Nigerian businesses seem more optimistic about business activity in the coming months, as just six of the 15 future expectations indicators registered declines compared with 12 out of 15 the previous month, according to Standard Chartered MNI-Business Sentiment Indicators(BSI).
Furthermore, just three future expectations indicators are below the 50 breakeven level. The increased optimism was also captured by the overall business conditions future expectations indicator which reached its highest level since July 2016.
The Standard Chartered-MNI Business Sentiment Indicator (BSI) for Nigeria fell to 54.7 in January from 58.9 in December. The deterioration in sentiment was largely the result of declining demand now that the festive season is over. Its survey suggests that price pressures eased in January, with Nigerian businesses expecting further easing in the coming months. Access to credit continues to be a major concern for Nigerian businesses: the availability of credit indicator hit yet another series low following that set in December. While credit availability remains a major concern for a majority of Nigerian businesses, those able to secure loans reported a decline in the rate of interest paid.
January business sentiment fell to 54.7 from 58.9 in December Businesses,· Inflationary pressures·however, remain optimistic about the coming months Interest costs are falling despite a declining·receded as demand softened supply of credit.
The Standard Chartered-MNI Business Sentiment Indicator (BSI) for Nigeria fell to 54.7 in January from 58.9 in December. Four of the five indicators that make up the headline figure declined. Of these, new orders – which contribute the most to the headline indicator (35%) – registered the largest drop. The employment indicator, however, rose marginally. Headline sentiment is down 11.4 percent compared to a year ago.
With the festive season now over, Nigerian businesses reported weaker demand. New orders were down 14.6 percent on the month while export orders fell back into contractionary territory after rising for three consecutive months. Inventories have started to build up, with the current conditions indicator rising 14.4 percent m/m. In response, firms are cutting back production.
Standard Chartered MNI Business Sentiment Indicator operates in two Markets: Kenya, Nigeria and provide unrivalled insight into business activity, and is expected to be a forerunner in economic analysis in each of the three countries. Companies of varying scale and sectors respond to a consistent set of survey questions covering themes such as orders, production, interest rate fluctuations, credit availability, employment and export trends.
In Africa, Standard Chartered has more than 8,000 staff and a history of more than 150 years. Currently the Bank covers 38 markets on the continent – 16 on a local presence basis, and an additional 22 on a transaction basis supporting its clients. Given its unique footprint, Standard Chartered is ideally positioned to facilitate and support valuable trade and investment corridors intra-Africa, and between Africa and the rest of the world. Findings from an independent study confirm that Standard Chartered supports just under 2 million jobs in Sub Saharan Africa, and contributes more than $10.7billion or 1.2 percent of the region’s GDP. In leading markets such as Kenya, Ghana and Zambia, the Bank’s operations provide work for just under 3 percent of the local workforce. Standard Chartered’s commitment to innovative partnerships such as ‘Power Africa’ enables the Bank to live its brand promise to be ‘Here for good’, and facilitate the delivery of electricity to more than 20 million people and companies over 5 years.
