By Anayo Ezugwu
FOR the sixth consecutive months, the Nigerian economy has continued to slow down. The manufacturing Purchasing Managers’ Index, PMI, in the month of October showed that the sector slowed at 49.4 index points, indicating slowing contraction in the manufacturing sector compared with the last five months.
In its ‘Purchasing Managers’ Index survey report for October, the Central Bank of Nigeria, CBN, said that of the 14 subsectors surveyed, six subsectors reported expansion (above 50% threshold) in the month under review. The subsectors are electrical equipment, transportation equipment, printing and related support activities, chemical and pharmaceutical products, textile, apparel, leather and footwear and cement.
The remaining eight subsectors 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 & rubber products and food, beverage and tobacco products. The report noted that at 50.0 points, the production level index in October for the manufacturing sector indicated halting in contraction, which commenced since May 2020. Of the 14 subsectors surveyed, seven subsectors recorded expansion in production level, one subsector maintained current level, while six subsectors recorded declines in production in October. It said the new orders index expanded at 51.2 points from contraction in the previous month. Four subsectors reported expansion in new orders, four subsectors were stationary, while the remaining six recorded contractions in the review month.
According the report, the manufacturing supplier delivery time index stood at 51.8 points in October. This indicated that supplier delivery time was faster for the sixth consecutive month. Six of the 14 subsectors recorded improved suppliers’ delivery time; five subsectors reported stationery level, while three subsectors recorded slowing delivery time.
The employment level index for October 2020 stood at 46.0 points, indicating contraction in employment level for the seventh consecutive month. Of the 14 subsectors, three subsectors recorded growth in employment level in the review month; two subsectors recorded stationary level of employment, while the remaining nine subsectors recorded lower employment levels in the review month.
At 46.2 index points, the manufacturing sector inventories contracted for the seventh time in October 2020. Two of the 14 subsectors recorded growth in inventories, while the remaining 12 subsectors recorded lower raw material inventories in the review month.
– Oct. 30, 2020 @ 17:15 GMT |