Manufacturing Sector Hits Sixth-month Slow Growth
The Purchasing Managers Index for the manufacturing sector which started contracting in May recorded another contraction in October according to the Central Bank of Nigeria.
The statistics department of the CBN disclosed in its ‘Purchasing Managers’ Index survey report for October, that this contraction hit the sixth month.
Part of the report read, “The manufacturing PMI in the month of October stood at 49.4 index points, indicating slowing contraction in the manufacturing sector compared with the last five months.
“Of the 14 subsectors surveyed, six subsectors reported expansion (above 50 per cent threshold) in the review month in the following order: electrical equipment, transportation equipment, printing and related support activities, chemical and pharmaceutical products, textile, apparel, leather and footwear and cement.
“The remaining eight subsectors reported contractions in the following order: primary metal, petroleum & coal products, paper products, fabricated metal products, furniture and related products, nonmetallic mineral products, plastics and rubber products and food, beverage and tobacco products.”
At 50.0 points, the production level index in October for the manufacturing sector indicated halting in contraction which commenced since May 2020.
Of the 14 subsectors surveyed, seven subsectors recorded expansion in production level, one subsector maintained current level, while six subsectors recorded declines in production in October.
The new orders index expanded at 51.2 points from contraction in the previous month, it said.
Four subsectors reported expansion in new orders, four subsectors were stationary, while the remaining six recorded contractions in the review month.
It said the manufacturing supplier delivery time index stood at 51.8 points in October.
This indicated that supplier delivery time was faster for the sixth consecutive month.
Six of the 14 subsectors recorded improved suppliers’ delivery time, five subsectors reported stationery level, while three subsectors recorded slowing delivery time.
The employment level index for October 2020 stood at 46.0 points, indicating contraction in employment level for the seventh consecutive month.
Of the 14 subsectors, three subsectors recorded growth in employment level in the review month; two subsectors recorded stationary level of employment, while the remaining nine subsectors recorded lower employment levels in the review month.
At 46.2 index points, the manufacturing sector inventories contracted for the seventh time in October 2020.
Two of the 14 subsectors recorded growth in inventories, while the remaining 12 subsectors recorded lower raw material inventories in the review month.