New PMI indicates manufacturing sector records growth in economy ─CBN

Isola Moses | ConsumerConnect

Reeling off Nigeria’s October Purchasing Managers’ Index (PMI) for the manufacturing sector of the economy, the Central Bank of Nigeria (CBN) has disclosed that the country’s PMI standing at 49.4 index points indicates a reversal of five consecutive months of contraction which started May 2020.

The Statistics Department of the CBN stated this in a PMI survey the apex bank released Tuesday, October 27, 2020.

The manufacturing PMI for the month of September was 46.9 index points, according to agency report.

The survey revealed that of the 14 subsectors surveyed, six recorded expansion above 50 per cent threshold.

Subsectors that reported expansion were electrical equipment, transportation, equipment, printing and related support activities, chemical and pharmaceutical products, textile, apparel and footwear, as well as cement.

The remaining eight subsectors reported contraction.

They are primary metal, petroleum and coal product, paper products, fabricate metal products, furniture and related products, non-metallic mineral products, plastic and rubber products and food, beverage and tobacco products.

According to the survey, the employment level in the review month two sub-sectors recorded stationary level of employment whereas the remaining nine subsectors recorded lower employment levels.

The PMI for the non-manufacturing sector, however, stood at 46.8 points in October 2020, indicating contraction in nonmanufacturing PMI for the seventh consecutive month, revealed the survey.

It noted that “of the 17 sub-sectors surveyed, three subsectors reported growth in the following order: electricity, gas, steam and air conditioning supply, art, entertainment and recreation and Health care and social assistance.

“Eleven subsectors reported declines in the following order: management of companies; utilities; Information and communication; construction; professional, scientific, and technical services; repair, maintenance/washing of Motor Vehicles.”

Other declining subsectors are wholesale/retail trade; educational services; transportation and warehousing; accommodation and food services and real estate rental and leasing.