By Elizabeth Adegbesan
The Central Bank of Nigeria (CBN) yesterday said that the Manufacturing Purchasing Managers Index (PMI) fell below the 50 index points for the third consecutive months in July, indicating further contraction in economic activities during the month.
A composite PMI above 50 index points indicates the economy is expanding, 50 points indicate non change, while below 50 points indicate the economy is generally contracting. According to the PMI Survey Report for July released by the CBN yesterday, the Manufacturing PMI of 44.9 index points, from 44.1 index points in June, indicating contraction in the manufacturing sector for the third consecutive months.
Similarly, the report showed that the Non Manufacturing PMI stood at 43.3 index points, translating to contraction in the non-manufacturing sector for the fourth consecutive month.
It however noted that out of the 31 surveyed subsectors, 6 sub-sectors reported growth (above 50 percent threshold).
The report stated: “The Manufacturing PMI in the month of July stood at 44.9 index points, indicating contraction in the manufacturing sector for the third consecutive month . Of the 14 surveyed subsectors, transportation equipment subsector reported growth (above 50% threshold) in the review month while nonmetallic mineral products sector reported no change.
“The non-manufacturing sector PMI stood at 43.3 points in July 2020, indicating contraction in Non-manufacturing sector for the fourth consecutive month. Of the 17 surveyed subsectors, 2 subsectors:arts, entertainment & recreation and transportation & warehousing reported growth (above 50 percent threshold) in the review month.