The Central Bank of Nigeria (CBN) has reported that the Manufacturing Purchasing Manager’s Index (PMI) contracted to 48.5 index points in August 2020, indicating the fourth consecutive month it declined.
The latest PMI report published by the apex bank showed that out of the 14 subsectors surveyed, only six subsectors reported expansion with eight dropping significantly.
According to the report, the six subsectors that recorded positive trend in the month under review include nonmetallic mineral products; cement; plastics & rubber products; transportation equipment; chemical & pharmaceutical products and textile, apparel, leather & footwear.
Conversely, the eight subsectors that recorded decline are printing & related support activities; electrical equipment; petroleum & coal products; primary metal; furniture & related products; paper products; food, beverage & tobacco products; and fabricated metal products.
The report clarified: “At 49.2 points, the production level index for the manufacturing sector showed contraction in August 2020 and for the fourth consecutive months. Of the 14 subsectors surveyed, 5 subsectors recorded expansion in production level, 3 subsectors reported same level of production, while 6 subsectors recorded contraction in production in August 2020.”
The CBN report also reflected that the employment level index for the month stood at 44.6 points, indicating contraction for the fifth consecutive months, adding that “of the 14 subsectors, 2 subsectors recorded expansion in employment level in the review month; 3 subsectors recorded same level of employment, while the remaining 9 subsectors recorded lower employment level in the review month.”
On the PMI trend for Non-Manufacturing sector, the apex bank reported that “the PMI for the non-manufacturing sector stood at 44.7 points in August 2020, indicating contraction in non-manufacturing activities for the fifth consecutive months.
“Of the 17 surveyed sub-sectors, only the utilities subsector reported same level, while the remaining 16 subsectors reported contracted in the following order: repair, maintenance/washing of motor vehicles; real estate rental & leasing; professional, scientific, & technical services; management of companies; electricity, gas, steam & air conditioning supply; educational services; health care & social assistance; finance & insurance; construction; arts, entertainment & recreation; transportation & warehousing; accommodation & food services; water supply, sewage & waste management; wholesale/retail trade; agriculture and Information & communication”, the CBN added.
