PMI Report Indicates Contraction In 70% Of Economic Subsectors
Central Bank of Nigeria (CBN) said that 70 percent of the sub-sectors surveyed for its monthly Purchasing Managers Index (PMI) experienced contraction in December.
The report showed that out of 31 sub-sectors surveyed, 22 recorded contraction while nine recorded growth.
This represents a downward trend when compared to the November survey. Out of the 31 sub-sectors surveyed in November, 20 recorded contraction while 11 recorded growth.
The CBN report stated: “The Manufacturing PMI in the month of December stood at 49.6 index points, indicating a contraction from the expansionary level recorded in the month of November 2020. Of the 14 surveyed subsectors, four subsectors reported expansion (above 50% threshold) in the review month in the following order: Transportation equipment, Nonmetallic mineral products, Paper products and Food, beverage & tobacco products. Textile, apparel, leather & footwear subsector remained stationary while the remaining nine subsectors reported contractions in the following order: Primary metal, Petroleum & coal products; Cement, Electrical equipment, Fabricated metal products, Printing & related support activities, Plastics & rubber products; Chemical & pharmaceutical products and Furniture & related products.
“PMI for the non-manufacturing sector stood at 45.7 points in December 2020, indicating contraction in Non-manufacturing PMI for the ninth consecutive months. Of the 17 surveyed sub-sectors, five subsectors reported growth in the following order: Arts, Entertainment & Recreation; Water supply, sewage & waste management; Electricity, gas, steam & air conditioning supply; Educational services and Professional, scientific & technical services.
Twelve subsectors reported declines in the following order: Management of companies ; Utilities; Transportation & warehousing; Real estate rental & leasing; Construction; Finance & insurance; Agriculture; Wholesale/Retail trade; Information & communication; Repair, Maintenance/Washing Of Motor Vehicles; Health care & social assistance and Accommodation & food services.