According to the Central Bank of Nigeria, economic activity improved modestly in August compared to July.
In a report on its most recent Monetary Policy Committee meeting, the CBN stated both the manufacturing and non-manufacturing Purchasing Manager’s Indices have improved over time.
It did, however, remind us that this was still below the 50-index-point threshold.
“The committee noted the moderate improvement in both the manufacturing and non-manufacturing Purchasing Manager’s Indices, which, while still below the 50-index point benchmark, showed a marked improvement over time,” according to a section of the MPC report.
“The manufacturing and non-manufacturing PMIs improved to 46.9 index points each in August 2021, compared to 46.6 and 44.8 index points, respectively, in July 2021.”
It ascribed this to an increase in new orders, which is attributed to increased demand, an uptick in business activity, and further normalization of economic activities.
“Similarly, the employment level index component of the manufacturing and non-manufacturing PMIs improved to 49.4 and 48.8 index points, respectively, in August 2021, compared to 46.5 and 47.0 index points in July 2021,” the report added.
The CBN also stated that the committee was optimistic that the economy will continue to strengthen in the short to medium term with the existing level of monetary and fiscal supports, as well as measures to enhance vaccination and limit the pandemic.
The committee stated that it examined the performance of the bank’s measures to continue the recovery of output growth and address the negative risks to the economy from other global and internal shocks.
It stated that interventions remained primarily focused on industry, agriculture, energy/infrastructure, and micro, small, and medium-sized businesses.