Nigeria’s Purchasing Managers Index (PMI) widened to 50.5 points, with the cement sector recording the highest growth in economic activity in September 2024, according to the latest report of the Central Bank of Nigeria (CBN).
This is an improvement from 50.2 points in August 2024 and shows that economic activity continues to expand for the second consecutive month.
The PMI survey, conducted by the CBN from September 9 to 13, 2024, provides insight into the direction of business activity across key sectors of the Nigerian economy, including industry, services and agriculture. The index is derived from responses from purchasing and supply executives from a variety of companies who provided data on their business activities. An index above 50.0 points suggests growth in business activity, while an index below 50.0 points suggests contraction. A measurement of 50.0 points indicates no change.
In the September 2024 report, both the services and agriculture sectors recorded expansion, with the services sector marking the fourth consecutive month of growth. The industrial sector contracted, but the pace of decline was slower than in August 2024. The cement sub-sector stood out among the 36 sub-sectors surveyed across the three sectors, recording the highest growth in economic activity, while 10 sub-sectors such as transport and warehousing reported declines. has been done.
Production volume, new orders, and raw material inventory showed positive trends at 50.7 points, 52.2 points, and 51.4 points, respectively, indicating growth. However, there were declines in some areas, particularly supplier delivery times and employment, which were 48.4 points and 49.1 points respectively, indicating contraction in these areas during September.
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Regarding production, the comprehensive production index rose to 50.7 points, marking the third consecutive month of increase. Of the 36 subsectors surveyed, 21 subsectors showed growth in production levels, with the management of enterprises subsector recording the highest expansion. Conversely, subsectors such as forestry and transportation/warehousing decreased. Five subsectors remained unchanged during the review period.
New orders increased during the month, as shown by the 52.2 points recorded in September. Nineteen subsectors, including chemicals and pharmaceuticals, saw an increase in new orders, while 14 subsectors reported a decline in orders. Some sub-sectors, such as furniture and related products, cinema, cinema, sound recording and music production, remained unchanged.
However, employment levels contracted in the same month. The overall employment index was 49.1 points, indicating that although the employment level is still declining, the contraction is not as large as in August 2024. Jobs were lost in 16 subsectors, with the paper products subsector being the hardest hit. Meanwhile, the forestry subsector recorded the highest employment index, with 18 subsectors reporting an increase in employment levels.
The industrial sector is still in a state of contraction, with PMI in September at 49.7 points. Nevertheless, the pace of contraction was slower than last month, suggesting a gradual recovery. The mining, quarrying, electricity, gas, water, and construction subsectors expanded, while the manufacturing subsector continued to decline. Of the 17 sub-sectors surveyed, four showed contraction, three remained flat and 10 showed expansion, with cement leading the growth rate.
The industry’s production volume and raw material inventory rose to 50.7 points and 51.7 points, respectively, indicating an increase in the production level. However, the new orders index and employment index in September showed a slight decline at 49.9 points and 48.2 points, and supplier delivery times were slow at 48.4 points.
Overall, the report reflects mixed performance across different sectors, with the cement sub-sector being the key driver of growth. The report highlights how the cement industry, along with specific industrial and service sectors, continues to play a critical role in sustaining economic expansion, even as challenges continue across other sub-sectors. There is.
