The CBN published its Purchasing Managers’ Index (PMI) survey report earlier in the week, noting that Manufacturing and Non-Manufacturing PMI stood at 53.6 and 54.1 points respectively. Above the 50index points level, Manufacturing and Non-Manufacturing PMI prints indicate further improvement in economic activities in August 2017.
At 53.6 index points, Manufacturing PMI has sustained 5-straight months of expansion with 12 of the 16 sub-sectors reporting strong growth in August.
All 6 sub-indices also sustained uptrend with Supplier Delivery Time(52pts) and Inventories (54.9pts) reporting faster growth while Production Level (57.4pts), New Orders (52.3pts) and Employment Level (51.5) growing at a slower rate.
Similarly, Non-Manufacturing PMI (54.1pts) indicated expansion in Non-manufacturing activities for the fourth consecutive month with performance in 15 of the 18 sub-sectors further strengthening in August.
Employment Level (54.4pts) and Inventories (52.3pts) sub-indices grew at a faster rate while Business Activity (56.1pts) and New Orders (53.5pts) slowed.
Juxtaposing the August PMI reading with GDP growth, available data provides evidence that above 50pts PMI is consistent with positive GDP and vice versa. Accordingly, sustained expansion in PMI reading foreshadows another positive GDP growth in Q3-2017 with September being the only month left in the quarter.
Dipo Olowookere 
Adedapo Adesanya