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CBN confirms Nigeria recovering from recession

CBN confirms Nigeria recovering from recession

The Central Bank of Nigeria (CBN), on Monday, May 3, 2017, issued its Purchasing Managers Index (PMI), report for April, which indicated expansion in most sub-sectors of the economy during the month.

The report stated, “Manufacturing PMI for the month of April 2017 showed recovery, production level growing faster; new orders and raw materials inventories growing from contraction; employment level is declining at a slower rate; while supplier delivery time is struggling to catch up.

“The Manufacturing PMI stood at 51.1 index points in April 2017, indicating expansion in the manufacturing sector after three months of contraction.

“Ten of the sixteen sub-sectors reported growth in the review month in the following order: appliances & components; food, beverage & tobacco products; textile, apparel, leather & footwear; chemical & pharmaceutical products; cement; nonmetallic mineral products; printing & related support activities; furniture & related products; electrical equipment and plastics & rubber products.

The production level index for manufacturing sector expanded for the second consecutive month in April 2017. The index at 58.5 points indicated an increase in production at a faster rate when compared to the 50.8 points in the previous month.

However, at 47.5 index points, the supplier delivery time index for the manufacturing sector worsened after a month of improvement.

“Employment level index in April 2017 stood at 46.6 points, indicating a slowing decline in employment level after twenty-six consecutive months of decline.  Meanwhile, the appliances & components and transportation equipment remained unchanged, while the primary metal and furniture & related products sub-sectors recorded growth in the employment level during the review period.

The business activity index under the non-manufacturing PMI report “rose to 53.3 points in April 2017, from its level of 49.8 points in March 2017, with twelve sub-sectors recorded growth.”

Twelve sub-sectors recorded growth in the following order: agriculture; utilities; transportation & warehousing; educational services; finance & insurance; water supply, sewage & waste management; public administration; electricity, gas, steam & air conditioning supply; real estate, rental & leasing; information & communication; health care & social assistance and repair, maintenance/washing of motor vehicles.

The professional, scientific, & technical services sub-sector remained unchanged, while the remaining five sub-sectors recorded growth in the order: management of companies; arts, entertainment & recreation; construction; wholesale trade and accommodation & food services.

The Manufacturing and Non-Manufacturing PMI Report on businesses is based on data compiled from purchasing and supply executives. Survey responses indicate whether there is change or no change in the level of business activities in the current month compared with the previous month.

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