Nigeria’s manufacturing sector records growth

The manufacturing sector’s Purchasing Managers Index (PMI) in the month of November stood at 50.2 index points, inidcating a growth from the October figure of 49.4 per cent.

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

According to the report, eight sub-sectors out of 14 sub-sectors surveyed, reported expansion (above 50 per cent threshold) in the month under review.

It listed the sub-sectors that expanded as transportation equipment, nonmetallic mineral products, furniture & related products, cement, textile, apparel, leather & footwear, plastics & rubber products, food, beverage & tobacco products, and printing & related support activities.

It said the remaining six sub-sectors reported contractions in the following order: electrical equipment, petroleum & coal products, chemical & pharmaceutical products, primary metal, paper products, and fabricated metal products.

Production Level

At 51.7 points, the production level index in November for the sector indicates recovery from the contraction recorded since May.

Of the 14 sub-sectors surveyed, seven subsectors recorded expanding production levels, three subsectors reported stationary levels of production, while four sub-sectors still recorded contraction in production level.

New Orders

The new orders index marginally expanded for the second time in the month of November. The index stood at 50.5 points in November 2020 with seven sub-sectors reporting expansion in new orders.

Three subsectors remained stationary while the remaining 4 subsectors recorded contraction in the review month.

Supplier Delivery Time

The manufacturing supplier delivery time index stood at 52.2 points in November 2020, indicating a faster delivery time for the seventh month.

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Four of the 14 sub-sectors recorded improved suppliers’ delivery time, three subsectors remained stationary, while seven subsectors recorded slower delivery time.

Employment Level

The employment level index for November 2020 stood at 47.3 points, indicating a contraction in employment level for the eighth consecutive month.

Of the 14 subsectors, five sub-sectors recorded growth in employment level while nine subsectors recorded lower employment level in the review month.

Raw material Inventories

The manufacturing sector inventories index contracted for the eighth time in November 2020. At 48.5 points, the index indicates a slowing contraction in raw materials inventories as some manufacturers begin to have access to raw materials.

Two of the 14 sub-sectors recorded growth in inventories, while the remaining 12 sub-sectors recorded lower raw material inventories in the review month.