Nigeria’s economic activities have shown a positive turn for the first time in over a year, according to the latest report from the Central Bank of Nigeria (CBN).
The Purchasing Managers’ Index (PMI) for August 2024, compiled by the CBN’s Statistics Department, stood at 50.2 index points, indicating an expansion in economic activities after 13 consecutive months of contraction.
The survey took place between August 12 and 16, with the participation of the company’s Purchasing and Supply Executives, who were selected from the Industry, Services, and Agricultural sectors of the economy.
An index above 50.0 points indicates an expansion in business activities, an index of 50.0 indicates no change, and an index below 50.0 points indicates a contraction in business activities.
The August PMI report noted that the economic upturn was primarily driven by improvements in output, new orders, and the stock of raw materials at 50.8, 50.5, and 51.3 points, respectively.
Meanwhile, Employment levels continued to decline, with 48.7 points in August for the eighth consecutive month.
The sectoral breakdown shows that the Services sector continued its expansionary trend for the third consecutive month, with a PMI of 50.7 points, with the Repair, Maintenance, and Washing of Motor Vehicles subsector leading the expansion.
With an index of 50.5 points, the Agriculture sector also saw growth for the first time in several months. Subsectors like Cattle, Fishery, and Forestry continued to fall, while Crop Production and Agricultural Support services recorded growth.
The Industry sector, though contracted with a PMI of 49.2 points, registered a slower contraction when compared to the level recorded in the previous months.
Of the 36 subsectors reviewed, 11 showed growth, with primary metal leading the increase. 19 subsectors registered declines, with Forestry seeing the biggest fall. The other six subsectors remained unchanged.
