The Central Bank of Nigeria’s latest Purchasing Manager’s Index report reveals that economic activities expanded in August for the first time in 13 months.
According to the PMI data released on Wednesday, the composite PMI for August 2024 registered at 50.2 index points, signaling a growth in economic activities after a prolonged period of contraction.
“The sectoral breakdown shows that the services sector recorded expansion for the third consecutive month, while the agricultural sector registered expansion for the first month. The industry sector, though contracted, registered a slower contraction when compared to the level recorded in the previous month.
“Among the 36 subsectors reviewed across the industry, services and agriculture sectors, 17 subsectors reported growth with primary metal reporting the highest growth during the review month, while the remaining 19 subsectors registered a decline with forestry reporting the highest decline.
“Output, new orders and stock of raw materials at 50.8, 50.5 and 51.3 points, respectively indicated growth. Suppliers’ Delivery Time is Stationary at 50.0 points, while Employment at 48.7 points registered a decline in August 2024,” the report stated.
The PMI for August 2024 stood at 50.2 index points, indicating growth after 13 months of contraction.
The CBN noted that the PMI survey, conducted from August 12 to 16, involved responses from Purchasing and Supply Executives across the three main economic sectors: industry, services, and agriculture. The PMI measures changes in business activities based on survey responses.
An index above 50.0 points signifies expansion, while below 50.0 points indicates contraction. An index of 50.0 denotes no change.
Despite the overall expansion, the composite Employment Index recorded a decline to 48.7 index points in August, reflecting continued contraction in employment levels for the eighth consecutive month.
“This index when compared to the level in July 2024, remained unchanged, indicating no significant change in employment during the period. 19 subsectors reported a contraction in employment level, with transportation equipment and forestry subsectors recording the highest decline in the review month. Six subsectors remained unchanged, while the remaining 11 subsectors reported increased Employment Levels with the Electrical Equipment subsector having the highest Employment index,” said the report.
In August, CBN announced the reintroduction of several key economic reports, including the Purchasing Managers’ Index (PMI), Business Expectation Survey, and Inflation Expectation Report.
