By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has disclosed that the Manufacturing Purchasing Managers’ Index (PMI) contracted for the fifth consecutive month in September 2020 to stand at 46.9 index points.
According to the report by the apex bank, only four out of the 14 sub-sectors in the manufacturing sector surveyed saw expansion above the 50 per cent threshold in the ninth month of the year.
The apex bank noted that expansion was registered in the electrical equipment; transportation equipment; cement and non-metallic mineral products sub-sectors.
However, the 10 remaining sub-sectors reported contractions in the following order: petroleum & coal products; primary metal; furniture & related products; printing & related support activities; food, beverage & tobacco products; textile, apparel, leather & footwear; chemical & pharmaceutical products; fabricated metal products and plastics & rubber products; while the paper product sub-sector was stable.
In terms of production, the CBN reported that the production level index for the manufacturing sector stood at 47.3 points, indicating a contraction in September for the fifth consecutive month.
Of the 14 sub-sectors surveyed, five recorded an increased production level, one reported the same level of production, while eight recorded declines in production.
By new orders, it contracted in the month under review to 46.4 points, also contracting in September for the fifth consecutive month.
Six sub-sectors reported expansion in new orders, while the remaining eight recorded contraction in the month.
The manufacturing supplier delivery time index stood at 53.5 points in the month, indicating a faster supplier delivery time for the fifth time.
Six of the 14 subsectors recorded improved suppliers’ delivery time, five subsectors reported the same level, while three subsectors recorded slower delivery time
The employment level index stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month.
Of the 14 sub-sectors, two recorded growth in employment, three recorded the same level of employment, while the remaining nine recorded lower employment level in the review month.
The manufacturing sector raw material inventories index also contracted for the sixth consecutive time in September to 43.0 points. Four of the 14 sub-sectors recorded growth in inventories, while the remaining 10 recorded lower raw material inventories.
For the non-manufacturing sector, PMI stood at 41.9 points in September 2020, indicating contraction in non-manufacturing PMI for the sixth consecutive month.
Out of the 17 sub-sectors surveyed, three subsectors reported growth in the following order: water supply, sewage & waste management; arts, entertainment and recreation and professional, scientific, and technical services.
On the other hand, the remaining 14 subsectors reported declines in the following order: management of companies; repair, maintenance/washing of motor vehicle; agriculture; finance & insurance; electricity, gas, steam & air conditioning supply; accommodation and food services; information & communication; health care and social assistance; real estate, rental and leasing; educational services; wholesale trade; transportation and warehousing; utilities and construction.
Dipo Olowookere