Nigeria’s manufacturing Purchasing Managers’ Index (PMI), a gauge for manufacturing sentiments, moved back into positive territory in February 2021 after recovering from 44.5 in January to 53.0 points, according to data by FBN Quest and NOI.
The index had declined sharply from 55.0 in December 2020 to 44.5 in January.
“The good recovery was driven by medium-sized and small firms,” analysts at FBN Quest said.
“Among their positive responses, we note an improvement in demand; a full month’s production (whereas many firms resumed late in January after the holidays); and an easing of COVID-related restrictions.”
Manufacturers in Nigeria are beginning to see increased demand for their goods as the economy gradually turns the corner on a brutal pandemic last year.
The economy exited recession in the fourth quarter of 2020 after two-quarters of successive declines even though there was a contraction of 1.92 percent for the full year.
PMIs, unlike the national accounts, are forward-looking indicators. They can move financial markets, at least in advanced economies and the large emerging markets.