The Central Bank of Nigeria, CBN yesterday released its Purchasing Managers Index, PMI Report for November which indicated contraction in economic activities for the second consecutive month.
The report showed that out of the 36 subsectors surveyed during the month, 22 subsectors recoded decline in economic activities while 14 subsectors recorded growth.
The Purchasing Managers' Index (PMI) survey is conducted to gauge the direction of economic activities in the country. An index above 50.0 points indicates an expansion in business activities, while below 50.0 points indicates a contraction in business activities. An index of 50.0 indicates a no-change situation.
According to the CBN, "The composite PMI for November 2024 stood at 48.9 index points, indicating contraction in economic activities for the second consecutive month."
"The Industry Sector index contracted in the review month. The Services Sector index indicated contraction in economic activities for the month reviewed. Agriculture Sector index expanded in November 2024.
"All indicators of the Composite PMI recorded declines in the review period. Output, New Orders, Employment, and Stock of Raw Materials stood at 49.6, 48.1 49.0 and 48.8 points, respectively indicating declines in composite economic indicators.
"22 sub-sectors registered decline in economic activities with Transportation & Warehousing reporting the highest decline. 14 subsectors reported growth in economic activities with Transportation Equipment reporting the highest growth during the review month."
The PMI report stated that, "The Industry Sector index, at 48.9 points indicated a decline in industrial activities in November 2024.
"The New Orders, Employment and Stock of Raw Materials declined at 47.1, 49.3 and 49.1 index points, respectively, while Output grew at 52.0. The Suppliers' Delivery Time index was slower at 49.1 index points in November 2024.
"Among the 17 subsectors surveyed, 10 recorded contraction, while the remaining 7 indicated expansion. The subsector with the highest contraction was Paper Products, whereas Transportation Equipment recorded the highest expansion. "The Services Sector index, at 47.4 points indicated contraction of activities in November 2024. The Business Activity (Output), New Orders, Employment, and Stock of Raw Materials stood at 47.4, 46.8, 48.0 and 47.6 index points, respectively. These indices all indicate decline in the review month.
"Among the 14 subsectors surveyed, 10 recorded contractions, while the remaining 4 indicated expansion. The subsector with the highest contraction was Professional, Scientific, & Technical Services, whereas Education services recorded the highest expansion.
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"The Agricultural Sector index, at 51.0 points indicated expansion in agricultural activities in November 2024. Output, New Order, Employment and Stock of Raw Materials all grew at 51.4, 51.2, 50.6 and 51.0 index points, respectively in the review month.
"Among the 5 subsectors surveyed, 3 recorded expansion, while 2 contracted. The subsector with the highest expansion was Crop Production, whereas Fishing/Fish Farming recorded the highest contraction."
