Business activities in Nigeria have declined for the fifth consecutive month in November as inflation rises.

The monthly Purchasing Managers Index (PMI) by Stanbic IBTC Bank shared on Monday, December 2, 2024, indicated that the headline index declined to 49.6 in November from 46.9 in October.

The PMI reading above 50.0 shows an improvement in business conditions, while those below show deterioration. The report attributes the sustained decline to persistent inflation and muted demand conditions, which have dampened business activity in the private sector.

The report stated: “The inflationary environment and muted demand conditions meant that business activity continued to fall, the fifth month running in which that has been the case.”

In spite of the general decline, sector-specific data showed mixed outcomes.

The agriculture and manufacturing sectors experienced modest increases in output, while the wholesale, retail, and services sectors recorded decreases.

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High input costs and weak demand also prompted companies to scale back purchasing activity and reduce stocks of inputs.

“This situation, in turn, led to a reduction in employment levels, marking the first such decline in seven months. However, the overall fall in staffing levels was marginal, primarily affecting the services sector," it said.

Companies continued to lower their backlogs of work during the month, reflecting a lack of pressure on capacity at suppliers.

The report highlighted that while conditions remained challenging, the pace of decline was less severe compared to previous months.

“Business confidence continued to wane in November and hit a fresh record low. Some firms remained optimistic in the outlook for output, however, amid business expansion and investment plans.”