CBN Report Shows Manufacturing Sector Is Very Healthy
It's good news coming out of Nigeria’s manufacturing sector.
Reports by the Central Bank of Nigeria, CBN say the manufacturing sector continues to grow and made impressive progress in December 2017.
So, the CBN released its Purchasing Managers Index, PMI on Wednesday and it indicated a rapid expansion of economic activities as far as the manufacturing sector is concerned.
What is PMI, you may ask.
PMI is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: New orders, inventory levels, production, supplier deliveries and the employment environment.
According to the CBN’s report, Nigeria’s Manufacturing PMI and Non-Manufacturing PMI rose to the highest level in more than three years.
The Manufacturing PMI rose to 59.3% and the Non-Manufacturing PMI rose to 62.1% during the month.
The report also showed that 30 out of the 34 subsectors surveyed by the apex bank recorded expansion, up from 27 subsectors that recorded expansion in November.
This is good news.
A composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding, 50 points indicates no change and below 50 points indicates that it is generally contracting.
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