Economy Improved Slightly In August – CBN

Economic activities improved slightly in August, compared to July, according to the Central Bank of Nigeria.

The CBN said in a report on its last Monetary Policy Committee meeting that the manufacturing and non-manufacturing Purchasing Manager’s Indices showed improvement over time.

It, however, noted that this was still below the 50-index point benchmark.

Part of the MPC report said, “The committee noted the moderate improvement in both the manufacturing and non-manufacturing Purchasing Manager’s Indices, though still below the 50-index point benchmark, showed a marked improvement over time.

“In August 2021, the manufacturing and non-manufacturing PMIs improved to 46.9 index points apiece, compared with 46.6 and 44.8 index points, respectively, in July 2021.”

It said this was attributed to an increase in new orders, driven largely by rising demand, uptrend in business activity and further normalisation of economic activities.

“Similarly, the employment level index component of the manufacturing and non-manufacturing PMIs in August 2021 improved to 49.4 and 48.8 index points, respectively, compared with 46.5 and 47.0 index points in July 2021,” it said.

The CBN added that the committee expressed optimism that with the current level of monetary and fiscal stimuli, as well as efforts to increase vaccination and contain the pandemic, the economy would continue to improve in the short to medium term.

The committee said it reviewed the performance of the bank’s interventions to sustain the recovery of output growth and address the downside risks to other external and domestic shocks to the economy.

It said interventions continued largely in manufacturing, agriculture, energy/infrastructure and micro, small, and medium enterprises.