December PMI shows 51-point growth after two months contraction – CBN

The Central Bank of Nigeria (CBN) on Friday released its Purchasing Managers Index (PMI) for December 2024, revealing that economic activities experienced a growth of 51.0 index points following two months of contraction.

This signifies a positive shift in the nation’s economic performance. Specifically, the industry sector, which had been in a contractionary position, improved to 50.0 index points in December, marking a return to stability. The services sector also showed signs of growth, reflecting a favourable shift in economic activity during the month under review. Additionally, the agricultural sector saw continuous expansion, marking its sixth consecutive month of growth.

A breakdown of the 36 subsectors analysed across the industry, services, and agricultural sectors revealed that 21 sub-sectors reported growth in economic activities, with the forestry subsector recording the highest growth for the period. On the other hand, 15 sub-sectors experienced a decline, with non-metallic mineral products registering the largest contraction.

The PMI reading further indicated that output and new orders were both on the rise, with index points of 53.9 and 52.5, respectively, signaling growth in the overall economic indicators. However, employment and stock of raw materials showed a decline, with index points of 49.8 and 49.9, respectively, pointing to a reduction in these areas. Additionally, suppliers’ delivery times were slower, as indicated by a decrease to 45.8 index points.

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The report also highlighted that the industry sector, with a steady 50.0 index points, showed no change in industrial activity for December 2024. Within this sector, output and new orders saw growth, with respective index points of 53.7 and 51.1, whereas employment and stock of raw materials showed a decline at 48.7 and 46.1 points. The suppliers’ delivery time index continued to be slower, registering 45.8 index points for the month.

Of the 17 subsectors surveyed within the industry, nine showed expansion, while the remaining eight experienced contraction. Primary metal emerged as the subsector with the highest growth, whereas non-metallic mineral products recorded the largest contraction.

The PMI survey for December 2024 was conducted between December 9-13, 2024, to assess the direction of economic activities in Nigeria for that month.

The survey gathered responses from 1,900 participants, including purchasing and supply executives from the three main sectors of the economy: industry, services, and agriculture. The PMI is derived from responses related to changes in various aspects of business activities, with an index reading above 50.0 points indicating expansion, below 50.0 indicating contraction, and a reading of 50.0 suggesting no change in business conditions.