The Central Bank of Nigeria (CBN) recently published its monthly Purchasing Managers’ Index (PMI) report for April-19, indicating further expansion in the level of economic activities in Nigeria when compared to the preceding month.
An in-depth look into the report showed that manufacturing PMI sustained an upward trend for the 25t h consecutive month as it increased to 57.7 points (previously; 57.4 points) attributable to the sizeable level of growth recorded in twelve of the fourteen subsectors that make up the index. In the same vein, activities in the non-manufacturing sector improved and remained positive for the 24t h consecutive month as the non-manufacturing PMI for the period stood at 58.7 points (previously; 58.5 points) buoyed by growth recorded in all the 17 subsectors that make up the Index.
Clearly, the sustained but gradual improvement in the economy, attributed to the stability that characterized the pre-and post-election period, buttresses indications from the PMI readings. Additionally, a sustained uptick in crude oil prices and corresponding improvement in key economic indicators provides further basis for the positive reading in April-19 report. Nevertheless, Q1-2019 earnings publications submitted by corporates to the NSE continue to show mixed signals, with most companies reporting weaker performance for the period, implying that Q1-19 GDP may not surprise positively as indicated PMI.
