By Elizabeth Adegbesan
Economy expansion continued as the Manufacturing Purchasing Managers Index (PMI) rose to 52 index points in December 2021.
This represents a 4.8 per cent Year-on-Year rise when compared with 49.6 index points recorded in December 2020 which was below the 50 index point benchmark.
The non-Manufacturing PMI also rose by 6.3 per cent to 48.6 index points (though below the 50 index point benchmark) in December 2021 from 45.7 index points in December 2020.
In its latest Communiqué on Monetary Policy Committee meeting, the Central Bank of Nigeria, CBN, said: “Staff projections showed that the economy is expected to remain on a path of positive growth, given the impressive performance in the third quarter of 2021 and continuing rebound in economic activities.
“The Committee noted with satisfaction, the significant improvement in the Manufacturing Purchasing Managers’ Index (PMI), which rose to 52.0 index points in December 2021, compared with 50.8 index points in November reflecting the continuing economic recovery.
“This expansion was driven largely by increasing business activities in the economy, leading to increase in new orders and uptrend in employment and production levels. The Non-Manufacturing PMI, however, declined marginally to 48.0 index points in December 2021 from 48.6 points in November, largely reflecting a decline in services.
“The Committee, however, noted that current growth headwinds would likely moderate in the short to medium term, as the containment measures and the sustained implementation of economic stimulus permeate the domestic economy.”
“Members thus agreed that the Committee’s current priority remains to quicken the pace of the recovery through sustained and targeted spending by the fiscal authority supported by the Bank’s interventions.
“In this light, it was thought necessary to increase collaboration with the fiscal authority by providing complementary spending to finance productive ventures in a bid to improve aggregate supply and reduce prices.”