The Manufacturing Purchasing Managers Index recorded a slight growth from 43.3 index point in June to 44.8 index point in July, which is below the 50.0 index point benchmark.
A member of the Monetary Policy Committee, Ahmed Aliyu, said this in his personal statement at the last MPC meeting which was released by the Central Bank of Nigeria.
“My position is supported by the improvements in the Manufacturing Purchasing Managers Index which rose to 46.6 index points in July from 45.5 index points in June 2021, and the non-manufacturing PMI which increased to 44.8 index points in July 2021 from 43.0 index points in June 2021, even though they are below the 50.0 index points benchmark,” he said.
He said the economy grew by 0.51 per cent in first quarter of 2021 from 0.11 per cent in Q4 2020.
The main drivers of growth included agriculture and industry sectors by 2.28 and 0.94 per cent, respectively, while services contracted by – 0.39 per cent, he said.
He said as fragile as it might appear, there were indications that growth would maintain the current upward path through the remaining quarters of 2020, as economic activities expanded, given the sustained fiscal and monetary stimulus and the direct credit intervention schemes in the economy, especially in the real sector.
According to the CBN, though it remained below the 50-index point mark, the improvement was an indication of gradual recovery of output growth in the economy.
It said employment level index for July 2021 stood at 46.5 index points, relative to the preceding month’s figure of 45.0, but remained below the 50.0-index point threshold.
According to the CBN, the committee welcomed the sustained monetary and fiscal stimulus to revamp the domestic economy and hoped that the distribution of vaccines to subdue the pandemic will continue unabated.
