THE Central Bank of Nigeria, CBN, yesterday, released its Purchasing Managers Index (PMI) report for January, which indicated decline in economic activities during the month. The report showed that out of the 34 sub-sectors surveyed during the month, 21 sub-sectors recorded decline in activity.

Ten sub-sectors declined in the manufacturing sector while 11 sub-sectors declined in the non-manufacturing sector. The report also indicated decline in employment levels in both the manufacturing and non-manufacturing sectors. In the manufacturing sector, the employment level index at 45.3 points in January declined for the 23rd consecutive month, while the employment level index for the non-manufacturing sector, at 45.6 points declined for the thirteenth consecutive month.

 Decline in the  manufacturing sector

The report stated: “The Manufacturing PMI stood at 48.2 index points in January 2017, indicating a decline in the manufacturing sector during the review period. The index averaged 45.2 in the last twelve months, and had grown in December 2016 after recording declines for eleven consecutive months.” Ten of the sixteen sub-sectors surveyed recorded decline in the review month in the following order: primary metal; transportation equipment; paper products; electrical equipment; fabricated metal products; printing and related support activities; cement; furniture and related products; plastics and rubber products; and chemical and pharmaceutical products.

The remaining six subsectors are expected to expand in the order: petroleum and coal products; appliances and components; nonmetallic mineral products; food, beverage and tobacco products; textile, apparel, leather and footwear; and computer and electronic products. The production level index for manufacturing sector grew for the second consecutive month. The index stood at 51.3 points, indicating a slower growth when compared to the 57.6 points in the month of December 2016.

“The composite PMI for the non-manufacturing sector declined for the thirteenth consecutive month. The index stood at 49.4 points in January 2017, indicating a slowing decline when compared to that in December 2016. The composite PMI averaged 44.3 points in the last twelve months period. Of the eighteen non-manufacturing sub-sectors, eleven recorded declines in the following order: management of companies; construction; finance and insurance; public administration; water supply, sewage and waste management; repair, maintenance/washing of motor vehicles; professional, scientific and technical services; accommodation and food services; health care and social assistance; real estate, rental and leasing; and wholesale/retail trade.