Nigeria’s Purchasing Managers’ Index (PMI) for December 2024 increased to 51.0 index points, indicating a resurgence in economic activities following two months of decline.
This progress reflects a steady recovery path for one of Africa’s largest economies, as enterprises in multiple sectors start to regain their momentum.
The Central Bank of Nigeria (CBN) published this information in its monthly PMI report for December 2024, highlighting encouraging trends across essential sectors.
According to the report, the industry sector, which had been in a contractionary position in November, improved to 50.0 index points, reflecting increased production and business activity.
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Also, the report indicates that 21 subsectors experienced growth during the review month, with the Forestry subsector emerging as the top-performing category.
The increase in forestry operations underscores the rising demand for timber and various forestry products, which is primarily fueled by the construction and manufacturing sectors. The agricultural sector has also demonstrated remarkable growth, propelled by heightened investments in food production and export-focused agriculture.
In a similar vein, trade and small-scale manufacturing have experienced advancements, supported by enhanced consumer expenditure during the holiday period.
Despite the prevailing optimism, 15 subsectors indicated a decrease in economic activities. The Nonmetallic Mineral Products subsector experienced the most significant contraction during the reviewed period. This decline has been linked to a lack of demand for construction materials, especially in areas facing infrastructure difficulties.
The services sector exhibited a varied performance; while the hospitality and entertainment industries demonstrated strong growth, other service-oriented sectors struggled due to ongoing inflationary pressures and diminished disposable income.
