By Babajide Komolafe

There are indications that the slowdown in economic growth recorded last year persisted in the first quarter of this year.

Last year, the nation’s Gross Domestic Product (GDP), which reflects amount of goods and services produced in the economy, grew by 2.79 per cent, less than half of the 6.22 per cent recorded in 2014.

Mr Godwin Emefiele answering questions during his screening by the Senate for Central Bank Governorship in Abuja on Wednesday

Indication that this trend persisted in the first quarter of 2016 emerged from the CBN’s Purchasing Managers Index (PMI) for the month of March, which revealed decline in business activities, productivity level, new order and employment generation in the manufacturing and non manufacturing sectors.

According to the Manufacturing Sector PMI, “Production level, employment and raw material inventories declining at a slower rate; new orders declining at a faster rate; supplier delivery time improving at a slower rate”.

The non manufacturing PMI also reveals, “Business activity and new orders declining at a slower rate; employment level and raw materials Inventories declining at a faster rate.

The PMI is based on the survey of purchasing and supply executives of manufacturing and non-manufacturing organizations in 13 locations in Nigeria. The survey result is used to compute the monthly Purchasing Managers’ Index (PMI).

The PMI report for March stated, “The Manufacturing PMI improved marginally to 45.9 per cent in March 2016, compared to 45.5 per cent in the preceding month. This implies that the manufacturing sector declined at a slower rate during the review period. Of the sixteen manufacturing sub-sectors, twelve reported decline in the review month in the following order: transportation equipment; furniture & related products; plastics & rubber products; textile, apparel, leather & footwear; printing & related support activities; nonmetallic mineral products; paper products; fabricated metal products; primary metal; computer & electronic products; appliances & components and electrical equipment. The remaining four sub-sectors however reported expansion in the following order: petroleum & coal products; food, beverage & tobacco products; cement and chemical & pharmaceutical products.

“The composite PMI for the non-manufacturing sector declined for the third consecutive month. However, the index improved to 45.4 per cent, compared to the 44.3 points registered in the preceding month. Of the eighteen non-manufacturing sub-sectors, sixteen sub sectors reported declines in the month of March in the following order: management of companies; construction; real estate, rental & leasing; finance & insurance; wholesale trade; utilities; accommodation & food services; professional, scientific, & technical services; public administration; transportation & warehousing; health care & social assistance; electricity, gas, steam & air conditioning supply; arts, entertainment & recreation; water supply, sewage & waste management; information & communication and repair, maintenance/washing of motor vehicles. The remaining two subsectors reported growth in the review month in the order: educational services and agriculture.”