The Central Bank of Nigeria released the most recent Purchasing Manager’s Index (PMI) which indicates that economic activities grew in August for the first time in 13 months.
According to the PMI published by the CBN on Wednesday, the combined PMI for August 2024 reached 50.2 index points, signaling an expansion in economic activities following 13 consecutive months 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 CBN said the August PMI survey was conducted from August 12 to 16, adding that the survey respondents were the company’s Purchasing and Supply Executives, drawn from the three sectors of the economy, namely: industry, services, and agriculture.
The Central Bank of Nigeria (CBN) has provided details about the methodology used in its recent Purchasing Managers’ Index (PMI) survey for August 2024. They mentioned the survey was conducted between August 12 and 16, gathering responses from Purchasing and Supply Executives across the industrial, services, and agriculture sectors.
The PMI is calculated based on respondents’ assessments of changes in various aspects of their business activities. An index value above 50.0 indicates expansion in business activities, while a value below 50.0 suggests contraction.
An index of 50.0 indicates a no-change situation.
A closer look at the composite Employment index showed that at 48.7 index points in August, the contraction in employment level continued 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.
The Central Bank of Nigeria (CBN) announced in August the reinstatement of several critical economic reports, including the Purchasing Managers’ Index (PMI), Business Expectation Survey, and Inflation Expectation Report.
In a statement issued by the Acting Director of Corporate Communications, Hakama Ali, the CBN emphasized the significance of these reports in providing stakeholders with timely and accurate information about Nigeria’s economic performance. These reports offer valuable insights into the country’s economic climate and facilitate a better understanding of its overall economic health.
This article was written by Tamaraebiju Jide, a student at Elizade University
