By Anayo Ezugwu
THE Manufacturing Purchasing Managers’ Index, PMI, has again contracted for the month of September. The PMI stood at 46.9 index points in the month under review, indicating contraction in the manufacturing sector for the fifth time in a row.
The PMI report for September published by the Central Bank of Nigeria, CBN, on its website disclosed that of the 14 subsectors surveyed, four subsectors reported expansion (above 50 percent threshold). The subsectors are electrical equipment; transportation equipment; cement and nonmetallic mineral products.
The remaining subsectors reported contractions, namely petroleum and coal products, primary metal, furniture and related products, printing and related support activities. Others are food, beverage and tobacco products; textile, apparel, leather and footwear; chemical and pharmaceutical products; fabricated metal products and plastics and rubber products; while paper product subsector was stable.
The report stated that the production level index for the manufacturing sector indicated contraction in September for the fifth consecutive month. Of the 14 subsectors surveyed, five subsectors recorded increased production level, one subsector reported same level of production, while eight subsectors recorded declines in production in September.
The report said at 46.4 points, the new orders index contracted in September for the fifth consecutive month. Six subsectors reported expansion in new orders, while the remaining eight recorded contraction in the review month. The manufacturing supplier delivery time index stood at 53.5 points in September, indicating faster supplier delivery time for the fifth time.
Six of the 14 subsectors recorded improved suppliers’ delivery time, five subsectors reported same level, while three subsectors recorded slower delivery time. The employment level index for September stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month.
Of the 14 subsectors, two subsectors recorded growth in employment, three subsectors recorded same level of employment, while the remaining nine subsectors recorded lower employment level in the review month. The manufacturing sector inventories index contracted for the sixth consecutive time.
At 43.0 points, the index declined in the review month. Four of the 14 subsectors recorded growth in inventories, while the remaining 10 subsectors recorded lower raw material inventories in the review month. The non-manufacturing sector PMI stood at 41.9 points in September 2020, indicating contraction in nonmanufacturing PMI for the sixth consecutive month.
Of the 17 sub-sectors surveyed, three subsectors reported growth in the following order of water supply, sewage and waste management; arts, entertainment and recreation and professional, scientific, and technical services.
The remaining 14 subsectors reported declines in the following order of management of companies; repair, maintenance/washing of motor vehicle; agriculture; finance and insurance; electricity, gas, steam and air conditioning supply; accommodation and food services; information and communication. Others are healthcare and social assistance; real estate, rental and leasing; educational services; wholesale trade; transportation and warehousing; utilities and construction.
– Sept. 25, 2020 @ 14:57 GMT |