Manufacturing Sector Slumps 5th Time In A Row

For the fifth consecutive time, the manufacturing sector growth slumped, data from September purchasing managers index show.

The data released by CBN statistics department indicated that the Manufacturing PMI in the month of September stood at 46.9 index points, indicating contraction in the manufacturing sector for the fifth time.

Manufacturing PMI in the month of August stood at 48.5 index points.

The index also showed that “of the 14 subsectors surveyed, four subsectors reported expansion (above 50% threshold) in the review month in the following order: electrical equipment; transportation equipment; cement and non-metallic mineral products.”

The PMI was during the period September 7-11, 2020. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT).

According to the report: “The remaining subsectors reported contractions in the following order: petroleum & coal products; primary metal; furniture & related products; printing & related support activities; food, beverage & tobacco products.”

Also, the “textile, apparel, leather & footwear; chemical & pharmaceutical products; fabricated metal products and plastics & rubber products; while paper product subsector was stable” the report indicated.”

The production level index closed at 47.3 points, which is a contraction in September 2020 for the fifth consecutive month.

Of the 14 subsectors surveyed, 5 subsectors recorded increased production level, one subsector reported same level of production, while 8 subsectors recorded declines in production in September 2020.

“The employment level index for September 2020 stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month. Of the 14 subsectors, two subsectors recorded growth in employment, three subsectors recorded same level of employment, while the remaining nine subsectors recorded lower employment level in the review month,” the report showed.