Nigeria’s manufacturing purchasing managers index edged up – CBN – Nairametrics
The manufacturing purchasing managers’ index edged up, indicating a gradual recovery in output growth.
The Central Bank of Nigeria revealed this in a report of the recent Monetary Policy Committee meeting.
The report indicated that the continued growth in net domestic assets was largely due to increased claims on the federal government and other non-financial public corporations, the private sector, and state and local governments.
What the CBN says
CBN Governor Godwin Emefiele said: “The committee also noted the continued improvement in the manufacturing purchasing managers index, which remained below the benchmark by 50 index points, rose to 47.3 index points in October 2021 from 46, 6 index points in September 2021.
“This improvement indicated a gradual recovery in production growth, driven in large part by the increase in new orders associated with the increase in aggregate demand and the resumption of commercial activities.
“The non-manufacturing PMI, however, fell to 47.5 index points in October 2021 from 47.8 index points in September 2021, as uncertainties persist around the poor security situation.“
He said the committee noted that headline inflation (year-on-year) continued to moderate in October, falling to 15.99% from 16.63% the month before, marking the seventh consecutive month of decline.
The decrease was attributed to a slight drop in food and basic components, which fell to 18.34% and 13.34% respectively in October 2021, compared to 19.57% and 13.74% in September 2021.
Despite its gradual decline, inflation has remained above the bank’s implicit tolerance range of 6-9% and above its benchmark key rate of 11.5%.
According to the CBN, the committee observed changes in monetary aggregates and found that the broad money supply increased by 7.10% in October, down from 4.72% in September. He said this was due to the growth of net domestic assets of 9.12% in October, compared to 10.71% recorded in September.
According to the report, however, net foreign assets contracted slightly by -1.50% in October, against -20.85% the previous month.
He said that in financial markets, money market rates hovered in the standing facilities corridor, reflecting the liquidity conditions prevailing in the banking system.