Economic activities expand first time in 13 months- CBN’s August PMI Report
CBN’s August PMI report
Economic activities expand first time in 13 months- CBN’s August PMI Report
Nike Popoola
The Central Bank of Nigeria (CBN)’s August Purchasing Managers’ Index (PMI) report signals economic activities rebound after 13 months of contraction.
It disclosed this in its Purchasing Managers’ Index (PMI) Survey Report for the month of August.
According to the report, “The composite PMI for August 2024 stood at 50.2 index points indicating expansion in economic activities for the first time in thirteen 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 CBN stated that the August 2024 Purchasing Managers’ Index (PMI) survey was conducted from August 12-16, 2024, to gauge the direction of economic activities in Nigeria for the month.
The survey respondents were the company’s Purchasing and Supply Executives, drawn from the three sectors of the economy, namely: Industry, Services, and Agriculture.
It added that the PMI is computed based on responses regarding the direction of change in different aspects of respondents’ business activities.
An index above 50.0 points indicates an expansion in business activities, while below 50.0 points indicates a contraction in business activities. An index of 50.0 indicates a no-change situation.
