The Purchasing Managers’ Index (PMI) increased to 52.70 points in December, indicating that Nigeria’s manufacturing industry ended 2024 on a high note. According to Stanbic IBTC Bank, this increase indicates a modest growth in industrial activity and suggests a bright future for the industry.
The nation’s PMI rose to 52.7 from 49.6 in November 2024, marking the second consecutive month of growth, according to the Stanbic IBTC Bank Nigeria PMI report for December 2024. Notably, an improvement in private sector activity is indicated by a PMI reading above 50. Nigeria’s PMI has been below the 50-point mark for the last five months, but the December data indicates that things are improving.
In line with findings from the previous month, the increased PMI was largely driven by the spike in demand during the holiday season, which resulted in an increase in new orders as well as steady output and employment growth. This result is consistent with previous projections, demonstrating the industrial sector’s resiliency in Nigeria.
The good PMI is expected to indicate improvement in the manufacturing sector, which will support Q4 2024 GDP growth and keep it over 3 percent, according to analysts. Nigeria’s economy, which has recently endured a number of difficulties, is glad to see this growth.
Employment and output in the manufacturing sector are also anticipated to benefit from the increased PMI number. Manufacturers will probably boost output and add more staff as demand keeps rising, which will lower unemployment and promote economic expansion.
According to researchers, Nigeria’s manufacturing PMI increased to 52.70 points in December 2024, which is a good sign that the industry is expanding.
Monitoring the PMI and other economic indicators is crucial as the economy develops in order to understand the performance of the sector and how it contributes to the growth of the national economy.
