The Manufacturing Purchasing Managers’ Index (PMI) for November 2020 marginally expanded after six consecutive months of contractions.
However, the non-Manufacturing PMI sustained its negative trend just as unemployment level continued its surging trend for the eighth consecutive month in the month under review.
The Central Bank of Nigeria (CBN) in its just published PMI Report for November, reported that the Manufacturing PMI stood at 50.2 index points while the non Manufacturing PMI stood at 47.6 index points below the 50 per cent threshold.
The apex bank stated: “The Manufacturing PMI in the month of November stood at 50.2 index points, indicating recovery from contraction in the manufacturing sector recorded since May 2020.
“Of the 14 subsectors surveyed, 8 subsectors reported expansion (above 50% threshold) in the review month in the following order: Transportation equipment, Non metallic mineral products, Furniture & related products, Cement, Textile, apparel, leather & footwear, Plastics & rubber products, Food, beverage & tobacco products and Printing & related support activities. The remaining 6 sub sectors reported contractions in the following order: Electrical equipment, Petroleum & coal products, Chemical & Pharmaceutical products, Primary metal, Paper products and fabricated metal products.”
“PMI for the non-manufacturing sector stood at 47.6 points in November 2020, indicating slowing contraction in non-manufacturing activities.
“Of the 17 surveyed sub-sectors, 3 sub sectors reported growth in the following order: Transportation & warehousing; Health care & social assistance and Agriculture. Thirteen sub sectors reported declines in the following order: arts, entertainment & recreation; professional, scientific, & technical services; construction; repair, maintenance/washing of motor vehicles, utilities, water supply, sewage & waste management; real estate rental & leasing; accommodation & food services; finance & insurance; information & communication; wholesale/retail trade, educational services and electricity, gas, steam & air conditioning supply. Management of company subsector reported stationary level”, the apex bank stated.
On employment level, the report indicated that the employment level index for November 2020 stood at 47.3 points, indicating contraction for the eighth consecutive months, adding that of the 14 subsectors, 5 subsectors recorded growth in employment level while 9 subsectors recorded lower employment level in the month under review.
The PMI is an index of the prevailing direction of economic trends in the manufacturing and service sectors. An index reading below 50 indicates negative direction while above 50 signifies growth.