Economy improved on increased business activities in December – CBN

Economic recovery improved in December due to increased business activities, according to the Central Bank of Nigeria.

The CBN disclosed this in a report on its last Monetary Policy Committee meeting on the Purchasers Managers Index.

PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

According to the CBN, the non-manufacturing sector however, declined marginally to 48.0 index points in December 2021 from 48.6 points in November, largely reflecting a decline in services.

It 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, 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, however, declined marginally to 48.0 index points in December 2021 from 48.6 points in November, largely reflecting a decline in services.”

The CBN Governor, Godwin Emefiele, had earlier disclosed that the country’s Gross Domestic Product could rise to three per cent by the end of 2021.

During a Chartered Institute of Bankers of Nigeria’s event in Lagos, Emefiele said, “I am optimistic that by the end of the year, our economy will not only close the output gap brought about by the 2020 recession, but that we would end the year with an annual GDP growth of between 2.5 – 3 per cent, up from -1.92 per cent in 2020.”

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