Manufacturing sector diminishes 5th time in 8 months – CBN —
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Manufacturing sector diminishes 5th time in 8 months – CBN

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Central Bank of Nigeria CBN has disclosed that the Nigerian Manufacturing Purchasing Managers’ Index PMI in the month of September stood at 46.9 index points, indicating contraction in the manufacturing sector for the fifth time.

This was part of the Purchasing Managers’ Index PMI Survey Report obtained from the apex bank’s website yesterday.

According to the survey, of the 14 subsectors surveyed, four subsectors reported expansion, above 50% threshold in the review month in the following order: electrical equipment; transportation equipment; cement and nonmetallic mineral products.

The remaining subsectors 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 paper product subsector was stable.

Also at 47.3 points, the production level index for the manufacturing sector indicated contraction in September 2020 for the fifth consecutive month.

The survey showed that out 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 2020.

On the other hand, the new orders index contracted in September 2020 for the fifth consecutive month at 46.4 points.

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 2020, indicating faster supplier delivery time for the fifth time.

Six of the 14 subsectors recorded improved suppliers’ delivery time, 5 subsectors reported same level, while three subsectors recorded slower delivery time.

The survey also disclosed that the employment level index for September 2020 stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month.

While 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.

The CBN stated that of the 17 sub-sectors surveyed, three subsectors reported growth in the following order: water supply, sewage & waste management; arts, entertainment & recreation and professional, scientific, & technical services.

While 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 & food services; information & communication; health care & social assistance; real estate, rental & leasing; educational services; wholesale trade; transportation & warehousing; utilities and construction.

The apex bank survey also disclosed that at 43.7 points, the business activity index declined for the fifth consecutive month, indicating contraction in non-manufacturing business activity in September 2020.

Three out of the 17 subsectors reported growth in business activities above 50% threshold in the review month; while the remaining 14 subsectors recorded decline in business activity in the review month

At 39.5 points, new orders index declined for the sixth time in September 2020.

The survey stated that two of the 17 subsectors reported growth in new order above 50% threshold in the review month, one sector reported same level of new order, while the remaining 14 subsectors recorded decline in new orders in the review month.

The employment level Index for the non-manufacturing sector stood at 41.6 points, indicating contraction in employment level in September 2020.

Two subsectors recorded growth, one subsector recorded same level of employment, while the remaining 14 subsectors reported decline in employment level below 50% threshold in the review month.

At 43.1 points, non-manufacturing inventory index declined for the sixth consecutive month. This indicates reduced inventories in the review period.

Three subsectors reported growth in inventory; the arts, entertainment & recreation sector reported same level of inventories, while the remaining 13 subsectors recorded decline in inventories in the review period.

The September 2020 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period September 7-11, 2020.

The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory FCT.

The Bank makes no representation regarding the individual companies, other than the information they have provided.

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