By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has disclosed that the manufacturing Purchasing Managers’ Index (PMI) in October stood at 49.4 index points, indicating a contraction in Nigeria’s manufacturing sector for the sixth time this year.
This was disclosed in the October PMI report released on Wednesday by the apex bank.
According to the report, six out of the 14 sub-sectors surveyed reported expansion (above 50 per cent threshold) in October.
It listed the sub-sectors that expanded as: electrical equipment; transportation equipment; printing and related support activities; chemical and pharmaceutical products; textile; apparel; leather and footwear and cement.
It said the remaining eight sub-sectors reported contractions in the following order: primary metal, petroleum and coal products, paper products, fabricated metal products, furniture and related products, nonmetallic mineral products, plastics and rubber, products and food, and beverage and tobacco products.
The production level index stood at 50.0 per cent in October for the sector indicates a halt in the contraction which commenced in May.
Out of the 14 sub-sectors surveyed, seven sub-sectors recorded expansion in production level, one sub-sector maintained current level, while six sub-sectors recorded declines in production in October.
The new orders index expanded at 51.2 points from contraction in the previous month.
Four sub-sectors reported expansion in new orders, four sub-sectors were stationary, while the remaining six recorded contractions in the month under review.
In terms of supplier delivery time, the report also stated that the manufacturing supplier delivery time index stood at 51.8 points in October.
This indicates that supplier delivery time is faster for the sixth consecutive month. Six of the 14 sub-sectors recorded improved suppliers’ delivery time, five sub-sectors reported stationery level, while three sub-sectors recorded slowing delivery time.
The employment level index for October stood at 46.0 points, indicating contraction in employment level for the seventh consecutive month.
Of the 14 sub-sectors, three sub-sectors recorded growth in employment level in the review month; two sub-sectors recorded stationary level of employment, while the remaining nine sub-sectors recorded lower employment levels in the review month.
In terms of raw material Inventories, the month stood at 46.2 index points, indicating that the manufacturing sector inventories contracted for the seventh time in October.
Two of the 14 sub-sectors recorded growth in inventories, while the remaining 12 sub-sectors recorded lower raw material inventories in the review month.
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