Central Bank of Nigeria’s (CBN) Purchasing Managers’ Index (PMI) report for July indicates a continued decline in economic activities, marking the 13th consecutive month of contraction since June 2023.
Gatekeepers News reports that the PMI stood at 49.7 points, signalling a contraction but an improvement from June’s 48.8 points.
The report notes that the increase in PMI was driven by expansion in output level, suppliers’ delivery time, and stock of inventory, while new orders and employment contracted.
The Services Sector experienced expansion for the second consecutive month, while the Industry and Agricultural Sectors saw a slower rate of contraction.
The Industry Sector PMI stood at 48.3 points, marking its sixth consecutive month of contraction, but with an improvement in industrial activities. The Manufacturing, Construction, Mining & Quarrying, and Electricity, Gas & Water Supply Subsectors recorded contractions.
In contrast, the Services Sector index showed expansion for the second consecutive time since May 2023, driven by growth in Business Activity and Stock of Raw Materials Inventory. The Agriculture Sector index signaled a contraction for the third consecutive month, despite growth in General Farming Activity and Stock of Agricultural Inventory.
The report highlights the ongoing challenges in Nigeria’s economy, with 11 subsectors recording contractions and six experiencing expansion.
