Data by the Central Bank of Nigeria (CBN) has revealed that Nigeria’s Purchasing Managers’ Index (PMI) for December 2024 rose to 51.0 index points.
The rise in the PMI, the CBN said, signals a return to expansion in economic activities after two consecutive months of contraction and also demonstrates a gradual recovery trajectory for one of Africa’s largest economies as businesses across various sectors begin to regain momentum.
The data, released as part of the CBN’s monthly PMI report for December 2024, revealed positive trends across key sectors.
PMI is an indicator of the prevailing direction of economic trends across sectors including the manufacturing and service sectors.
The CBN conducted the survey between December 9-13, 2024 with a sample size of 1,900 business enterprises across Nigeria.
“The composite PMI for December 2024 at 51.0 index point, indicated expansion in economic activities after two consecutive months of contraction,” CBN said.
The report further revealed that the industry sector, which had been in a contractionary position in November, improved to 50.0 index points, reflecting increased production and business activity.
According to the report, 21 subsectors recorded growth during the review month, with the Forestry subsector leading the pack as the highest-performing category, highlighting the growing demand for timber and other forestry products, driven by the construction and manufacturing industries.
The agriculture sector also recorded impressive performance, driven by increased investments in food production and export-oriented farming.
Trade and small-scale manufacturing activities also posted gains, buoyed by improved consumer spending during the holiday season.
“21 subsectors reported growth in economic activities with Forestry reporting the highest growth during the review month,” the CBN noted.
Despite the overall optimism, 15 subsectors reported declines in economic activities.
Non-metallic Mineral Products recorded the highest contraction during the period under review, a situation attributed to weak demand for construction materials, particularly in regions grappling with infrastructure challenges.
The services sector also experienced a mixed performance, with hospitality and entertainment showing robust growth, while other service-oriented businesses lagged due to lingering inflationary pressures and reduced disposable income.
Nigeria’s PMI for November 2024 stood at 48.9 points.
