By John Audu, Lagos.
The Central Bank of Nigeria’s (CBN) Purchasing Managers’ Index (PMI) report for November 2024 has revealed a contraction in economic activities for the second consecutive month. The composite PMI stood at 48.9 index points, indicating a decline in business activities.
According to the report, 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.
The Industry Sector index contracted in November 2024, with 10 out of 17 subsectors surveyed recording contractions. The Services Sector index also indicated contraction in economic activities, with 10 out of 14 subsectors surveyed recording contractions.
However, the Agricultural Sector index expanded in November 2024, with 3 out of 5 subsectors surveyed recording expansions. Crop Production recorded the highest expansion, while Fishing/Fish Farming recorded the highest contraction.
The report noted that 22 sub-sectors registered declines in economic activities, with Transportation & Warehousing reporting the highest decline. On the other hand, 14 sub-sectors reported growth in economic activities, with Transportation Equipment reporting the highest growth.
The contraction in economic activities is a cause for concern, and policymakers may need to take measures to stimulate economic growth. The CBN’s PMI report provides valuable insights into the state of the economy and can inform policy decisions.
“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.”
