Last week, the Central Bank of Nigeria (CBN) published its monthly Purchasing Managers’ Index for Jun-19 which indicated that, although the level of economic activities sustained a positive momentum, it grew at a slower pace.
An in-depth look into the report showed that the manufacturing PMI stayed positive for the
26th consecutive month but emerged lower at 57.4 (previously; 57.8) while the non-manufacturing PMI came in lower at 58.6 points (previously; 58.9 points).
Observably, in the past two years, both manufacturing and non-manufacturing PMIs have remained in the expansionary region (> 50 points). This fairly correlates with the marginal improvement that trailed the country’s exit from recession. Yet, the recent deceleration in the leading indicator reflects the continuation of the sluggish growth in the broader economy. This could also be linked to the uncertainty that trails the delay in the
appointment of cabinet members and attendant structural reforms required to boost economic activities.
United Capital Research
