By Elizabeth Adegbesan
Activities in Nigeria’s manufacturing sector experienced its fifth consecutive monthly decline, standing at 46.9 index points in September 2020 due to decline in business activities during the period.
This represents a 4.2 index points decline since May 2020 when the manufacturing Purchasing Managers Index (PMI) stood at 51.1 index points.
The Central Bank of Nigeria (CBN) disclosed this yesterday in its PMI Report for September 2020, saying that out of 31 sub sectors surveyed only seven sub-sectors recorded expansion.
A composite PMI above 50 points indicates that the manufacturing and non-manufacturing economy is generally expanding, 50 points indicates no change and below 50 points indicates it is generally contracting.
The apex bank stated: “The Manufacturing PMI in the month of September stood at 46.9 index points, indicating contraction in the manufacturing sector for the fifth time.
“Of the 14 subsectors surveyed, 4 subsectors reported expansion (above 50% threshold) in the review month in the following order: electrical equipment; transportation equipment; cement and non-metallic 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.
“The non-manufacturing sector PMI stood at 41.9 points in September 2020, indicating contraction in non-manufacturing PMI for the sixth consecutive month.
“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.”