A financial research firm in Nigeria, FSDH, on Monday predicted an unprecedented business profit and consumer income growth in the country this year than in the last three years.
FSDH said in a report in Lagos that its analysis of the recent data from the Central Bank of Nigeria (CBN) on business and consumer expectations confirmed the position.
According to the research company, the CBN’s surveys conducted in December 2017 show that the expectations of firms and consumers about the next 12 months improved from previous months.
“The improvement in the business expectations should drive business expansion and increase the employment of labour.
“This in turn will increase the consumers’ purchasing power. On the other hand, the increase in consumer expectations will hike spending which will have positive impact on businesses.
“The interrelationship between the two economic agents (business and consumer) will drive business profit and consumer income.
“The latest Purchasing Managers’ Index (PMI) report that the CBN published for the month of December 2017 shows improved business activities in both the manufacturing and non-manufacturing sectors.
“At 59.3 and 62.1 points, the Composite Manufacturing PMI and Composite Non-Manufacturing PMI respectively attained the highest levels since January 2015,” the report said.
It also said that the impact of the expected growth in the business profit and consumer income was positive to the financial market.
“We expect it to drive equity market investments and position corporate bodies to access long-term capital needed for expansion.
“Banks should also be more favourable to extend credit to both businesses and individuals, leading to a growth in the National Disposable Income,” the report said.