The Central Bank of Nigeria’s (CBN) Purchasing Managers’ Index (PMI) report for July indicates a continued contraction in economic activities, marking the 13th consecutive month of decline since June 2023.
According to the report, the Purchasing Managers’ Index (PMI) for the month stood at 49.7 points- signalling a contraction in economic activities during the month but an improvement from June which stood at 48.8 points.
The PMI is calculated based on responses about the direction of change in various aspects of respondents’ business activities. An index above 50.0 points signals an expansion in business activities, while an index below 50.0 points indicates a contraction. An index of exactly 50.0 points reflects no change in business activity.
The report noted that the increase in PMI for the month was on the back of expansion in output level, suppliers’ delivery time and stock of inventory expanded while new orders and employment contracted during the period.
The report indicated that the Services Sector experienced expansion for the second consecutive month, while the Industry and Agricultural Sectors saw a slower rate of contraction compared to the previous month.
Within the Industry Sector, the Manufacturing, Construction, Mining & Quarrying, as well as the Electricity, Gas & Water Supply Subsectors, all recorded contractions during the review month.
The report for July 2024 indicated that the Industry Sector PMI, at 48.3 points, marked its sixth consecutive month of contraction.
The report indicated that the Services Sector index in July 2024, at 50.3 points, showed expansion for the second consecutive time since May 2023.
The report showed that the Agriculture Sector index was at 49.7 points in July 2024, signalling a contraction in economic activities for the third consecutive month.
