SAT OCT 05 2024-theGBJournal| The Central Bank of Nigeria’s (CBN) Purchasing Manager’s Index (PMI) report for September indicate private sector activities remained resilient as the composite PMI expanded to 50.5 points (August: 50.2 points).
We highlight that the improved reading indicates a sustained upturn in the services and agriculture sectors while the industry sector remains subdued.
Analyzing the breakdown, services PMI (51.0 points vs. August: 50.7 points) notched to a 16-month high on account of the solid upturn in business activities, increased stock of raw materials and continued rise in incoming business opportunities.
In the same vein, the agriculture sector PMI (51.4 points vs. August: 50.5 points) expanded for the second straight month due to improved crop production, while livestock, forestry and agricultural support services also witnessed expansions in the period.
Elsewhere, while the industry sector PMI (49.7 points vs August: 49.2 points) remains below the benchmark, September print represents the highest level in eight months, indicating increased activities across the mining, quarrying, electricity, gas & water supply and construction subsectors; the manufacturing subsector declined.
We expect that resilient services and potential improvement in agricultural activities following the harvest period will support private sector performance in the near term. However, ongoing challenges from the highly inflationary environment and tight financial conditions are expected to constrain economic activities, particularly in the industrial sector.
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