Amid strengthened customer demand and growth output, the start of Q2 2025 saw a further improvement in conditions among businesses and companies. This is according to Stanbic IBTC Bank’s Purchasing Managers’ Index (PMI) survey for April.

The headline PMI posted above the 50.0 no-change mark for the fifth consecutive month in April. At 54.2, it was broadly in line with the 54.3 posted in March and pointed to a solid monthly improvement in business conditions.

Readings above 50.0 signal an improvement in business conditions over the previous month, while readings below 50.0 show a deterioration.

In response, firms ramped up their purchasing activity and took on extra staff, but this capacity expansion was not sufficient to prevent a build-up of backlog of work. Meanwhile, inflationary pressures ticked from March but remained muted relative to the picture in 2024.

“Output increased at a sharp and accelerated pace in April, with the rate of expansion the most pronounced since January 2024. All four broad sectors saw business activity rise, with the sharpest growth in services. Higher new orders and increased customer numbers were among the factors mentioned by businesses as having supported the growth of output. New orders rose sharply as demand conditions strengthened, with the pace of expansion little changed from that seen in March,” it observed.