CBN report indicates Nigeria’s economic activities expansion in 13 months

The Central Bank of Nigeria’s Purchasing Managers’ Index (PMI) report for August 2024 showed that businesses recorded their first expansion in 13 consecutive months.

This is according to the report released by the apex bank on Wednesday.

The report showed that the composite PMI for August 2024 stood at 50.2 index points, indicating expansion in economic activities for the first time in 13 consecutive months of contraction.

Accordingly, the sectoral breakdown indicates 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.

Summarily, among the 36 sub-sectors reviewed across the Industry, Services and Agriculture Sectors, 17 sub-sectors reported growth with Primary Metal reporting the highest growth during the review month

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.

However, the composite output index stood at 50.8 points, indicating growth in production level for the second consecutive month.

Further analysis showed that of the 36 sub-sectors reviewed, 19 sub-sectors reported growth in production during the review month, with primary metal recording the highest expansion, while 14 sub-sectors registered a decline with non-metallic mineral products reporting the highest decline.

Also, the fabricated metal products; electricity, gas, steam and air conditioning supply; and utilities sub-sectors remained stationary.

This is as the composite level of new orders index at 50.5 points indicated expansion in the volume of incoming businesses/orders. Of the 36 sub-sectors reviewed, 15 sub-sectors reported growth in levels of new orders with primary metals recording the highest growth.

Also, the business activity index stood at 51.3 points, signaling growth for the third consecutive month and suggesting improving conditions in the Service Sector.

“Out of the 14 sub-sectors surveyed, nine reported expansions, the Utilities sub-sector remained stationary and the remaining four sub-sectors reported contractions.

“The repair, maintenance, and washing of motor vehicles sub-sector saw the highest growth, whereas professional, scientific, and technical services recorded the most significant decline,” it said.