The Central Bank of Nigeria (CBN) stated that the increase in Manufacturing Purchasing Managers’ Index (PMI) is reflective of the continuing economic recovery in the Nigerian economy.
The Manufacturing Purchasing Managers’ Index (PMI), rose to 52.0 index points in December 2021, compared with 50.8 index points in November.
This was disclosed in the CENTRAL BANK OF NIGERIA COMMUNIQUÉ NO. 140 OF THE MONETARY POLICY COMMITTEE MEETING HELD ON MONDAY 24th AND TUESDAY 25th JANUARY, 2022.
The Purchasing Managers’ Index (PMI) is a measure of the manufacturing and service industries’ current economic developments. It consists of a diffusion index that summarizes whether market conditions are expanding, staying the same, or deteriorating as seen by buying managers.
The positive move by the PMI gave the apex bank more confidence in the economy.
Also, CBN stated that its projections showed that the economy is expected to remain on a path of positive growth, given the impressive performance in the third quarter of 2021 and continuing rebound in economic activities.
What the CBN is saying
The CBN said, “The Committee noted with satisfaction, the significant improvement in the Manufacturing Purchasing Managers’ Index (PMI), which rose to 52.0 index points in December 2021, compared with 50.8 index points in November reflecting the continuing economic recovery.”
According to the apex bank, the uptick in PMI is linked to increased business activities in the Nigerian economy. The CBN said, “This expansion was driven largely by increasing business activities in the economy, leading to an increase in new orders and an uptrend in employment and production levels.”
On the other hand, The Non-Manufacturing PMI, declined marginally to 48.0 index points in December 2021 from 48.6 points in November, largely reflecting a decline in services.