The latest Purchasing Managers’ Index (PMI) released by the Central Bank of Nigeria (CBN) has indicated a positive shift in the country’s economic activities. The composite PMI for August 2024 stood at 50.2 index points, marking the first expansion in 13 months.
The sectoral breakdown reveals that both the services and agricultural sectors registered growth, while the industry sector experienced a slower contraction compared to the previous month.
Key indicators such as output, new orders, and stock of raw materials all showed expansion, while employment levels remained unchanged.
The CBN conducted the PMI survey from August 12 to 16, gathering responses from purchasing and supply executives across the industry, services, and agriculture sectors.
The PMI is a valuable tool for assessing business activities, with an index above 50.0 indicating expansion and below 50.0 indicating contraction. An index of 50.0 signifies no change.
Despite the positive overall trend, the employment index remained below 50.0 for the eighth consecutive month, indicating continued contraction in employment levels.
The CBN’s reintroduction of key economic reports, including the PMI, is a significant step towards providing stakeholders with timely and accurate insights into Nigeria’s economic performance.
