Expert contests Stanbic IBTC Bank’s report on Private Sector Rebound in April
Whereas a new study commissioned by the Stanbic IBTC Bank of Nigeria says that the private sector rebounded after March cash crunch, Dr Mike Adeola has disagreed with the report, saying “The Stanbic IBTC Report on recovery of the private sector is hurriedly done and lacked the time depth that will allow for its acceptability”.
According to him, “We need to wait on the NBS and other real time economic surveying agencies to come up with their report because as far as am concerned, the private sector is still suffering the effects of the failed naira redesign policy of the apex bank”.
Meanwhile, the Stanbic IBTC Bank’s report claims that there were signs of recovery in the Nigerian private sector in April as the cash crisis eased.
The report on its Purchasing Managers’ Index titled ‘Nigerian private sector returns to growth in April’, showed key findings that the easing of cash crisis supported renewed rise in new orders; output and purchasing also increased, but employment fell; and there was selling price inflation at three-year low. Firms reported renewed expansions in new business and output amid improved access to funds. According to the report, companies remained cautious with regards to hiring, however, and employment fell slightly. It stated that, “There were mixed trends in terms of prices at the start of the second quarter. “Input costs increased at a sharper rate, but further efforts to attract customers led firms to increase their selling prices at the softest pace for three years.” PMI readings above 50.0 signalled an improvement in business conditions on the previous month, while readings below 50.0 showed deterioration. It stated that, “The headline PMI moved back above the 50.0 no-change mark for the first time in three months during April.”
