Again, Nigeria’s Manufacturing Index Declines

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CBN Governor, Mr. Godwin Emefiele

The Manufacturing Purchasing Managers’ Index (PMI) stood at 48.5 index points in August, indicating contraction in the manufacturing sector for the fourth consecutive months.

The Central Bank of Nigeria (CBN) disclosed this in its PMI report for August posted on its website yesterday

However, the report showed that of the 14 sub-sectors surveyed, six reported expansion (above 50% threshold) in the review month in the following order: nonmetallic mineral products; cement; plastics and rubber products; transportation equipment; chemical and pharmaceutical products and textile, apparel, leather and footwear.

On the other hand, the remaining eight sub-sectors reported contraction in the following order: printing & related support activities; electrical equipment; petroleum & coal products; primary metal; furniture & related products; paper products; food, beverage & tobacco products; and fabricated metal products.

According to the report, at 49.2 points, the production level index for the manufacturing sector showed contraction in August 2020 and for the fourth consecutive months.

It revealed that of the 14 sub-sectors surveyed, five recorded expansion in production level, three sub-sectors reported same level of production, while six sub-sectors recorded contraction in production in August 2020.

“At 49.2 points, the new orders index shows slower contraction in August 2020. Six sub-sectors reported expansion in new orders, two sub-sectors maintained same level, while six recorded contraction in the review month.

“The manufacturing supplier delivery time index stood at 53 points in August 2020, indicating faster supplier delivery time for the fourth time,” it added.