Standard Chartered, MNI add Nigeria to business sentiment indicators

Standard Chartered Bank has stated that from the end of October 2014, it will alongside MNI Indicators, publish monthly Business Sentiment Indicators for two leading markets namely Kenya and Nigeria in Africa.

The bank through a statement noted that its MNI Business Sentiment Indicators which provides unrivalled insight into business activity, and is expected to be a forerunner in economic analysis in each of the countries Kenya, Nigeria and Ghana inclusive, ensures that 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.

According to the bank, its first MNI BSI Indicators reveal that business confidence appears to be robust in Nigeria, with demand and output both increasing at the fastest pace since the Standard Chartered MNI BSI series began in March.

It further adds that whilst it is likely the holiday season of Eid el Kabir and Independence day celebrations in early October lifted output, activity is usually robust ahead of Christmas.

The statement further noted that while interpretation of trends within the BSI should improve over time, there are a few key observations in the economy.

It stated that despite the Ebola virus, business confidence has held up and the economy appears unaffected. “Although export orders have jumped to a series high, the Nigerian Naira weakness is seen to be hurting business through higher input prices (raw material, consumables, etc) as most of them are imported.

Credit costs eased further, but credit availability is perceived to have worsened. Employment remains flat despite the strength in orders and output” the statement added

Standard Chartered’s Regional Head of Research for Africa, Razia Khan stresses that “adding the Nigeria Business Sentiment Indicator to our market indicators enables a broader perspective to Nigeria’s market dynamics, while enabling us to draw interesting comparisons between business perspectives from one side of the continent to the other. We look forward to analysing trends and developments over the coming months, as the series takes shape.”

This month’s reports see the addition of Nigeria to Standard Chartered and MNI’s Business Sentiment Indicators which the bank has expressed that market watchers with a focus on Nigeria will now benefit from two specific market indicators namely, Business Sentiment Indicator and the recently launched Consumer Price Tracker both of which are sponsored by the bank.

- Culled from: http://www.vanguardngr.com