All these have led to slowdowns in growth of output and new orders, a new Purchasing Managers’ Index report has revealed.
“Although new orders continued to rise in June, the rate of expansion was only marginal and the weakest in the current seven-month period of growth. There were some reports of underlying demand improving, but sharp price rises meant that customers faced challenges being able to commit to new projects,” the report said.
Meanwhile, efforts to help workers with increased living and transportation costs led to a further solid rise in wages, it said. In line with the picture for new orders, output rose at a slower pace last month but expansion was slight and the weakest in four months. The agriculture and manufacturing sectors posted faster increases in business activity than services and wholesale and retail.
Head of Equity Research West Africa, Stanbic IBTC Bank, Muyiwa Oni, said financial challenges at customers limited the ability of firms to fully benefit from any improvements in underlying demand just as inflation remained elevated in June, ticking higher for the second month running to the strongest since March.
According to MAN’s Director-General, Segun Ajayi-Kadir, the summit will prove pivotal for the manufacturing sector as the theme: “Rethinking Manufacturing,” will address the need for innovative strategies and approaches to enhance the efficiency, competitiveness and sustainability of the real sector.