FG, NBS adopt Stanbic IBTC purchasing managers index

The Federal Government and the National Bureau of Statistics (NBS) on Monday adopted the Purchasing Managers’ Index (PMI) unveiled by Stanbic IBTC plc.

Yemi Kale, statistician-general of the Federation/CEO of NBS, stated this at the unveiling of the bank’s index in partnership with Markit in Lagos. The PMI is used to aid effective policy implementation.

The PMI provides advance insight into the private sector economic activities by tracking variables such as output, new orders, employment and prices across key sectors of the economy.

Kale commended the bank for the initiative, adding that the nation needed reliable and dependable data to address national issues such as employment and government policies.

“`Reliable and dependable data is helpful in addressing national issues,’’ Kale said, saying government was becoming more strategic in policy management in view of the dwindling oil revenue and needed reliable data to aid investment decisions.

Kale said that data from the private sector was lacking in the country, noting that the PMI was unique when compared to other index.

He said the absence of data collection was affecting the nation’s growth and development, noting government would adopt the index as its official PMI, adding that it would partner the bank to ensure effective utilisation of the PMI in the country.

He said that PMI would be used by the government in planning and policy implementation.

The News Agency of Nigeria reports that Markit PMI (Purchasing Managers’ Index) series are among the most closely-watched economy indicators in the world, tracking business conditions in over 30 countries.

Economic analysts, business decision makers, forecasters and policy makers leverage the PMI surveys to better understand business conditions in a given economy.

Central banks in many countries use the data to help make interest rate decisions and analysts in the financial markets use PMI data to forecast official economic data.

The bank’s CEO, Yinka Sanni, said the bank would continue in its efforts in providing end-to-end financial services to all its clients.

Sanni said developments in the country’s economy made it imperative for a reliable index, which analysts and decision makers would rely on. “PMI has become the most closely watched business service in the world favoured by central banks, financial markets, business institutions and policy makers,’’ he said.

Sanni said the PMI provided up to date, accurate and often, monthly indicators of economic trend, saying the PMI “provides an advanced signal of what is happening in the private sector of the economy by tracking indices, such as output.’’

Sanni said the nation had navigated through various factors – political and election transition process, volatility in the financial and capital markets as well as slow-down in the economic growth and needed reliable data.

He said the client range of the product included banks, fund managers, the central bank, regulators, auditors, fund administrators and insurance companies.

Sanni said Markit was a leading global financial provider of business services and economy indices, noting that the PMI was available in over 30 countries.