CBN report confirms Nigeria recovering from recession

CBN

The Central Bank of Nigeria (CBN), yesterday, issued its Purchasing Managers Index (PMI), report for April, which indicated expansion in most sub-sectors of the economy during the month.

According to the report, of the 34 sub-sectors surveyed in the manufacturing and non-manufacturing sectors, 20 sub-sectors recorded growth in activities, while 14 sub-sectors recorded decline in activities.

The report stated, “Manufacturing PMI for the month of April 2017 showed recovery, production level growing faster; new orders and raw materials inventories growing from contraction; employment level is declining at a slower rate; while supplier delivery time is struggling to catch up.

“The Manufacturing PMI stood at 51.1 index points in April 2017, indicating expansion in the manufacturing sector after three months of contraction.

“Ten of the 16 sub-sectors reported growth in the review month.

The Central Bank of Nigeria head office in Abuja.

“The production level index for manufacturing sector expanded for the second consecutive month in April 2017.”

“The index at 58.5 points indicated an increase in production at a faster rate when compared to the 50.8 points in the previous month.

“Thirteen manufacturing sub-sectors recorded increase in production level during the review month.”

“After 16 months of decline, non-manufacturing is at the brink of growth, business activity and new orders growing from contraction; employment level and raw materials inventories declining at a slower rate in April 2017.

“The composite PMI for the non-manufacturing sector at 49.5 after sixteenth consecutive months of decline is at the brink of growth.

At 49.5 index points when compared to the 47.1 points in March 2017, this sector is indicating a vanishing decline.

Of the eighteen non-manufacturing sub-sectors, eight recorded declines in the following order: management of companies; construction; professional, scientific, & technical services; arts, entertainment & recreation; wholesale trade; health care & social assistance; repair, maintenance/washing of motor vehicles and accommodation & food services.

The remaining ten sub-sectors: agriculture; utilities; educational services; transportation & warehousing; finance & insurance; electricity, gas, steam & air conditioning supply; real estate, rental & leasing; information & communication; public administration and water supply, sewage & waste management reported growth in the review month.

“The business activity index rose to 53.3 points in April 2017, from its level of 49.8 points in March 2017, with twelve sub-sectors recorded growth.”

The Manufacturing and Non-Manufacturing PMI Report on businesses is based on data compiled from purchasing and supply executives.

Survey responses indicate whether there is change or no change in the level of business activities in the current month compared with the previous month.       



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