Businesses at 57.8 index point show greater confidence on macroeconomy
Nigerian businesses show greater confidence on the macro economy in March as confidence index rose to 57.8 points for the month of March compared to 14.5 index points in February 2018, according to the Central Bank of Nigeria (CBN).
The February 2018 Business Expectations Survey (BES), was carried out by the CBN during the period of February 12-20, 2018 with a sample size of 472 businesses nationwide. A response rate of 77.5 per cent was achieved, and the sample covered the services, industry, wholesale/retail trade and construction sectors.
The respondent firms were made up of small, medium and large organisations covering both import-and export-oriented businesses.
The optimism in the current month was driven by the opinion of respondents from services, which recorded 7.7 points, industrial (6.6 points) and construction (0.3 points) sectors, while the drivers of the optimism for next month were services (32.1 points), industrial (21.0 points), construction (3.3 points) and wholesale/retail trade (1.4points) sectors.
The positive outlook by type of business in March 2018 was driven by businesses that are export-related (70.0 points), those that are neither import- nor export-oriented (62.2 points), those that are both import- and export-oriented (50.9 points) and those that are import-oriented (48.1 points).
Respondents from industrial and services sectors expressed optimism on own operations in the current month with indices of 2.5 and 1.9, respectively.
Under financial condition and access to credit, Respondents’ outlook on the volume of total order, business activity and financial conditions (working capital) stood at 2.2, 7.1, and 3.8 index points respectively, indicating a positive outlook for establishments in the review month.
The average capacity utilization (CUI) index stood at 8.3 points in February 2018, which can be attributed to the positive outlook on business activity and financial conditions.
Respondents were however pessimistic on access to credit in the review month with an index of -7.2 points.
The positive outlook in the volume of business activities (67.0 index points) and employment (21.9 index points) indicated a favourable outlook in the next month. The employment outlook index by sector showed that the wholesale/retail trade (25.0 points) indicates the highest prospects for creating jobs, followed by services sector (22.8 points), industrial (20.9points) and construction (19.0 points) sectors.
An analysis of businesses by sector with expansion plans in the next month showed that the services and wholesale/retail trade sectors indicate greater disposition for expansion with indices of 40.0 and 28.6 points respectively.
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