FG, NBS adopt Stanbic IBTC economic index.

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The Federal Government and the National Bureau of Statistics (NBS) on Monday adopted the Purchasing Managers’ Index (PMI) unveiled by Stanbic IBTC Plc.

Yemi Kale, The Statistician-General of the Federation at the unveiling of the bank’s index in partnership with Markit in Lagos said it will aid effective policy implementation.

Absence of reliable data is affecting the nation’s growth making it difficult to address issues such as employment and infrastructure but Kale said government will adopt the index as its official PMI.

The PMI provides advance insight into the private sector economic activities by tracking variables such as output, new orders, employment and prices across key sectors of the economy.

“Reliable and dependable data is helpful in addressing national issues and the PMI  would be used by the government in planning and policy implementation. ’’ Kale said.

Markit PMI (Purchasing Managers’ Index) series are among the most closely-watched economy indicators in the world, tracking business conditions in over 30 countries.

He said government was becoming more strategic in policy management in view of the dwindling oil revenue and needed reliable data to aid investment decisions.

Kale said that data from the private sector was lacking in the country, noting that the PMI was unique when compared to other index.

Economic analysts, business decision makers, forecasters and policy makers leverage the PMI surveys to better understand business conditions in a given economy.

Central banks in many countries use the data to help make interest rate decisions and analysts in the financial markets use PMI data to forecast official economic data.

The bank’s Chief Executive Officer, Yinka Sanni, said the bank would continue in its efforts in providing end to end financial services to all its clients.

Sanni said developments in the country’s economy made it imperative for a reliable index which analysts and decision makers would rely on.

“PMI has become the most closely watched business service in the world favoured by central banks, financial markets, business institutions and policy makers,’’ he said.

Sanni said the PMI provided up to date, accurate and often, monthly indicators of economic trend.

He said the PMI “provides an advanced signal of what is happening in the private sector of the economy by tracking indices, such as output’’.

Sanni said the nation had navigated through various factors – political and election transition process, volatility in the financial and capital markets as well as slow-down in the economic growth and needed reliable data.

He said the client range of the product included banks, fund managers, the central bank, regulators, auditors, fund administrators and insurance companies.

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