Going by the reckoning of the Central Bank of Nigeria(CBN), the nation is getting out of the woods as its Purchasing Managers’ Index (PMI) Survey for June shows growth in business activities, job and manufacturing.
According to the apex bank, business activity index rose to 57 points in June for the third consecutive month. The index grew at a faster rate, when compared to its level in the previous month. Thirteen sub-sectors recorded growth for the period.
As for job growth, the CBN report states that employment level index in June stood at 51.1 points, indicating growth in employment level for the second consecutive month.
Out of the 16 sub-sectors surveyed, 10 recorded growth in employment. As for the non-manufacturing sector, the survey puts employment level Index at 53.4 points, indicating growth in employment for the second consecutive month. Sixteen sub-sectors recorded growth in employment for the month.
Equally showing that things were looking up was the production level. The production level index for manufacturing sector, according to the PMI, grew for the fourth consecutive month in June. The index at 58.2 points indicated an increase in production, but at a slower rate, when compared to the level attained in the previous month. Fourteen manufacturing sub-sectors were said to have recorded increase in production level during the month.
Recall that the Purchasing Managers’ Index (PMI) report for May also showed expansion in the manufacturing sector for the second consecutive month just as employment level also inched up after 26 consecutive months of contraction.
CBN found out in the survey that the Manufacturing PMI stood at 52.5 index points in May, indicating expansion, while employment level index in May stood at 50.7 points. The production level index for manufacturing sector also expanded for the third consecutive month. “The index at 58.7 points indicated an increase in production at a faster rate, when compared to the 58.5 points in the previous month.
New orders index stood at 50.5 points, indicating a faster growth in new orders for the second consecutive month,” the report adds.
The Manufacturing and Non-Manufacturing PMI Report on businesses is based on data compiled from purchasing and supply executives. Survey responses indicate whether there is change or no change in the level of business activities in the current month compared with the previous month. The composite PMI for non-manufacturing sector is computed from four diffusion indices: business activity, new orders, employment level and raw materials inventory.