The Purchasing Managers’ Index (PMI) for Nigeria rebounded in December 2024, indicating a return to economic expansion after two consecutive months of contraction, according to a survey released by the Central Bank of Nigeria (CBN).
The composite PMI, which tracks activity across manufacturing, services, and agriculture, rose to 51.0 in December, surpassing the 50-point threshold that separates expansion from contraction.
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This followed readings of 49.0 in November and 48.0 in October.
The services sector was the primary driver of growth, with the sector PMI rising to 52.1 in December. The agriculture sector also expanded, with a PMI of 52.7. However, the manufacturing sector remained stagnant, with a PMI of 50.0.
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Breakdown
A further breakdown of the 36 sub sectors reviewed across the industry, services and agriculture sectors showed that 21 sub sectors reported growth during the month of December, with the highest growth recorded in the services sector.
Similarly, 15 sub-sectors registered a decline in economic activities, with nonmetallic mineral products reporting the highest decline.
The Industry Sector PMI remained stagnant in December 2024, registering at 50.0. While output and new orders showed growth, employment and raw material stocks declined.
The sub-sector with the highest expansion was primary metal, while nonmetallic mineral products reported the highest contraction.
The services sector PMI stood at 52.1 in December 2024, indicating expansion in activity. Business activity (Output), new orders, employment, and stock of raw materials all registered growth.
Nine out of 14 sub sectors surveyed recorded expansion, with motion pictures, cinema, sound recording and music production showing the highest growth. Management of companies recorded the highest contraction.
The agriculture sector PMI stood at 52.7 in December 2024, indicating expansion in agricultural activities. Output, new orders, employment, and stock of raw materials all registered growth.
Five out of five sub-sectors surveyed recorded expansion, with forestry showing the highest growth. Agricultural support services recorded the highest contraction.
The output index rose to 53.9, indicating increased production across the economy.
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The new orders index also expanded, reaching 52.5, suggesting strong demand for goods and services.
The employment level index declined to 49.8, indicating a contraction in employment across the economy.
The raw materials index also contracted, falling to 49.9, suggesting potential supply chain disruptions or rising input costs.
The suppliers’ delivery time index was slower at 45.8 index points, indicating potential delays in the supply chain.
