Manufacturers’ confidence in economy wanes over lingering problems
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Loading... - Victoria Benjamin
- 16 Feb 2023
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Citing the adverse effect of the Consumer Price Index (CPI), continuous erosion in Naira value and difficulty in accessing foreign exchange, high cost of energy, persisting insecurity and the consequences of lingering Russian-Ukrainian war, local manufacturers have cited waning confidence in the business environment in Nigeria.
Using the Manufacturers CEO’s Confidence Index (MCCI) of the Manufacturers Association of Nigeria (MAN) as a benchmark for measuring changes in the pulse of operators and trends in the manufacturing sector quarterly, the local producers noted that these issues, among others, are principally responsible for the difficult operating environment and its declining implication on manufacturing activities in the country during the quarter under review.
Specifically, the Aggregate Index Score (AIS) of MCCI declined to 55.0 points in the fourth quarter of 2022 from 55.4 points obtained in the third quarter of the year.
The index score of the current quarter, though below that of the previous quarter, indicates that manufacturers generally still have confidence in the economy.
MCCI Index is computed using data generated on standard diffusion factors of current business condition, business condition for the next three months, current employment condition (rate of employment), and employment condition for the next three months and production level for the next three months.
The Index has a baseline score of 50 points and scores above the baseline indicate improvement of manufacturers confidence in the economy, while index score of less than the baseline suggests deterioration in the operating environment. Read More…
