By Adedapo Adesanya
The Manufacturing Purchasing Managers’ Index (PMI) in Nigeria stood at 41.1 points in June 2020, contracting for the second time.
Business Post had reported that for the first time in 37 months, the PMI of the manufacturing sector in Nigeria contracted to 42.2 points in May 2020.
In its latest report, the Central Bank of Nigeria (CBN) showed that out of the 14 surveyed sub-sectors, five sub-sectors reported growth, above 50 percent. These were electrical equipment; cement; petroleum and coal products; transportation equipment and paper products.
Meanwhile, other nine sub-sectors reported decline and included printing and related support activities; textile, apparel, leather and footwear; primary metal; plastics and rubber products; nonmetallic mineral products; fabricated metal products; food, beverage and tobacco products; chemical and pharmaceutical products and furniture and related products.
At 36.6 points, the production level index for the manufacturing sector declined in June 2020 for the second consecutive month.
The report stated that three sub-sectors recorded an increased production level, two remained unchanged, while nine sub-sectors recorded declines in production level in June 2020.
According to the report, the manufacturing supplier delivery time index stood at 60.9 points in June 2020, indicating growth in supplier delivery time index for the second time.
The index recorded growth from the contraction level recorded in March 2020.
In all, nine of the 14 subsectors recorded improved suppliers’ delivery time, three sub-sectors reported no change while two recorded slower delivery time in June 2020.
“The employment level index in June 2020 stood at 38.8 points, indicating a decline in employment level index for the third month. Of the 14 sub-sectors, two sub-sectors recorded increases in employment, one sub-sector remained unchanged, while the remaining 11 sub-sectors recorded lower employment level in the review month.
“The manufacturing sector inventories index showed contraction for the third time in June 2020. At 41.0 points, the raw materials inventories index is contracting at a slower rate when compared to its level in May 2020.
“Three of the 14 sub-sectors recorded reported growth in inventories, one remained unchanged, while the remaining 10 sub-sectors recorded lower raw material inventories in the review month,” the report added.
Furthermore, the composite PMI for the non-manufacturing sector stood at 35.7 points in June 2020, indicating contraction for the third consecutive month, but showing a gradual recovery in non-manufacturing activities when compared to the index in May 2020.
Dipo Olowookere