The Central Bank of Nigeria (CBN) has released its Purchasing Managers’ Index (PMI) report for August 2024, indicating a notable turnaround in the nation’s economic activities after a prolonged period of contraction. According to the report, businesses experienced their first expansion in 13 months, with the composite PMI recorded at 50.2 index points.
This increase suggests a significant shift, as it marks the first time since July 2023 that economic activities have expanded. The report highlights that the Services Sector achieved growth for the third consecutive month, while the Agricultural Sector also registered expansion for the first time.
Although the Industry Sector continued to contract, the pace of decline was slower compared to previous months. Among the 36 sub-sectors analyzed, 17 reported growth, with the Primary Metal sector showing the highest increase.
Key indicators of growth include the output index at 50.8 points, new orders at 50.5 points, and raw material stock at 51.3 points. However, employment levels decreased slightly, with an index of 48.7 points. The composite output index further demonstrated production growth for the second consecutive month, with 19 sub-sectors reporting increased production levels.
The report also noted that the business activity index stood at 51.3 points, reflecting growth in the Services Sector for the third month in a row. Among the 14 sub-sectors surveyed, nine experienced expansions, while some, like the Utilities sub-sector, remained stable.