The May 2019 Business Expectations Survey Report of the Central Bank of Nigeria (CBN) has identified insufficient power supply, high interest rate, unfavorable economic climate, financial problems and unclear economic laws as major factors that constrained business activity this month. However, respondent firms expressed optimism on the macro economy in the month under review. The central bank disclosed this in the report posted on its website at the weekend.
The survey report showed that respondents’ outlook on the volume of total order, business activity and financial conditions (working capital) were positive during the review period. Respondent firms expected the Naira to appreciate in the current month, next month and the next 12 months. In addition, they anticipated that the level of inflation would moderate in both the next six months and the next 12 months; while borrowing rate was expected to rise in the current month, next month and next 12 months.
The May 2019 Business Expectations Survey (BES) was conducted from May 6th to 10th, 2019 with a sample size of 1050 businesses nationwide. A response rate of 97 per cent was achieved, and the sample covered the services, industrial, wholesale/retail trade, and construction sectors. The respondent firms were made up of small, medium and large corporations covering both import- and export-oriented businesses.