Nigeria’s manufacturing sector contracts for 5th consecutive month

The manufacturing Purchasing Managers’ Index (PMI), in September 2020 stood at 46.9 index points, indicating a contraction in the manufacturing sector in the country for the fifth time.

This was disclosed by the Central Bank of Nigeria (CBN), in its September PMI report released on Wednesday.

According to the report, four out of the 14 subsectors surveyed reported expansion (above 50% threshold) in September.

It listed the expansion order for the subsectors as follows; electrical equipment; transportation equipment; cement and nonmetallic mineral products.

It said 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.

Production

With 47.3 points, the production level index for the manufacturing sector contracted in September 2020 for the fifth consecutive month.

Of the 14 subsectors surveyed, five subsectors recorded increased production levels, one subsector reported the same level of production, while eight subsectors recorded declines in production in September 2020.

New orders

At 46.4 points, the new orders index contracted in September 2020 for the fifth consecutive month. Six subsectors reported expansion in new orders, while the remaining eight recorded contraction in the review month

Supplier Delivery Time

The manufacturing supplier delivery time index stood at 53.5 points in September 2020, indicating faster supplier delivery time for the fifth time.

Six of the 14 subsectors recorded improved suppliers’ delivery time, five subsectors reported the same level, while three subsectors recorded slower delivery time.

Employment Level

The employment level index for September 2020 stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month.

Of the 14 subsectors, two subsectors recorded growth in employment, three subsectors recorded the same level of employment, while the remaining nine subsectors recorded lower employment levels in the review month.

Raw material Inventories

The manufacturing sector inventories index contracted for the sixth consecutive time. At 43.0 points, the index declined in the review month. Four of the 14 subsectors recorded growth in inventories, while the remaining 10 subsectors recorded lower raw material inventories in the review month.