Nigeria records improved Purchasing Managers Index (PMI)

The Manufacturers Association of Nigeria (MAN) has said that there had been improvement in the Purchasing Managers Index (PMI) of the manufacturing sector.

The President of MAN, Dr Frank Jacobs, made the disclosure in an interview  in Lagos.

Jacobs said that if sustained, the improvement would position manufacturers strategically to employ more workers.

PMI is an indicator of the economic well-being of the manufacturing sector.

It is based on five major indicators – new orders, inventory levels, production, supplier deliveries and the employment environment.

The PMI rose to 52.9 index points at the end of June from 52.5 index points in May.

Jacobs attributed this to Federal Government’s policy on ease of doing business and improved access of manufacturers to foreign exchange for purchase of raw materials.

Although we are still groaning under the weight of poor infrastructure, things seem to be getting better.”

“We are doing better now; therefore, we will create more jobs; if everything works out well, we believe that chances are there for reduced prices of goods to the final consumers,” Jacobs said.

According to him, the PMI performance is an indication of a significant contribution of the manufacturing sector to the Gross Domestic Product (GDP) and recovery of the economy from recession.

Jacobs urged the Federal Government to urgently develop infrastructure to help industries and improve standard of living.