The Central Bank of Nigeria (CBN)
Wednesday disclosed that some firms in the country have identified
insufficient power supply, high interest rates and unfavourable economic
climate as
major factors that constrained businesses in July.
Other factors, according to the bank, include financial problems, insufficient demand and unclear economic laws.
The CBN made the observations in its
July edition of Monthly Business Expectations Survey (BES) Report
released by its Statistics Department and posted on its Website.
The bank, in the survey conducted
between July 8 and July 12, said operators were optimistic of
experiencing growth in the macro-economy in the month under review.
According to the apex bank, the report
showed that respondents’ outlook on the volume of total order, business
activities and financial conditions such as working capital were
positive during the period.
The report said respondent firms expected the naira to appreciate in the months of July, August and the next 12 months.
It also said that the level of inflation
was expected to increase slightly in the next 12 months, while
borrowing rate was expected to rise in July, fall in August and increase
in the next 12 months.
The News Agency of Nigeria (NAN)
reported that the survey, with a sample size of 1,050 businesses
nationwide, had a response rate of 97.4 per cent and covered the
services, industrial, wholesale and retail trade as well as the
construction sectors.
“At 28.1 index points, respondents
expressed optimism on the overall Confidence Index (CI) on the
macro-economy in the month of July 2019.
“The business outlook for August 2019 showed greater confidence on the macro economy with 64.1 index points.
“The optimism on the macro-economy in
the current month was driven by the opinions of respondents from
services (15.4 points), industrial (10.0 points), wholesale/retail trade
(2.0 points) and construction (0.7points) sectors.
“Whereas the major drivers of the
optimism for next month were services (36.5 points), industrial
(20.7points), wholesale/retail trade (4.8 points) and construction (2.1
points) sectors.
“The positive outlook by type of
business in July 2019 was driven by businesses that were neither import
nor export-oriented (19.3 points), both import and export-oriented (4.8
points), import-oriented (3.4 points) and those that were
export-related,” the report said.
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