The Central Bank of Nigeria’s (CBN) latest Purchasing Manager’s Index (PMI) has revealed a significant turnaround in economic activity for August 2024. The PMI, released on Wednesday, recorded a composite index of 50.2 points, marking the first expansion in economic activities in 13 months.
The sectoral breakdown indicates that the services sector expanded for the third consecutive month, while the agricultural sector saw growth for the first time. Although the industrial sector continued to contract, it experienced a slower decline compared to the previous month.
Of the 36 subsectors reviewed, 17 reported growth, with primary metal showing the highest increase. Conversely, 19 subsectors experienced a decline, with forestry recording the most significant drop. Key indicators such as output, new orders, and stock of raw materials all showed positive growth, while suppliers’ delivery times remained stable at 50.0 points. Employment, however, decreased to 48.7 points, reflecting a continued contraction for the eighth consecutive month.
The PMI survey, conducted from August 12 to 16, included responses from Purchasing and Supply Executives across industry, services, and agriculture. An index above 50.0 points signifies expansion, while below 50.0 indicates contraction.
In a related development, the CBN announced the reintroduction of key economic reports, including the PMI, business expectation survey, and inflation expectation report. Acting Director of Corporate Communications, Hakama Ali, stated that these reports are vital for providing stakeholders with timely and accurate insights into Nigeria’s economic performance and climate.
